The Central Board of Direct Taxes (CBDT) has issued Circular No. 11/2025, modifying its earlier Circular No. 9/2022 on tax exemptions available under clause (23FE) of Section 10 of the Income-tax Act, 1961.
The key change aligns with the Finance Act, 2025, which extends the deadline for eligible investments in infrastructure by sovereign wealth funds (SWFs), pension funds (PFs), and Abu Dhabi Investment Authority (ADIA)-owned entities. The investment window, earlier closing on March 31, 2025, has now been extended to March 31, 2030.
This move is expected to boost foreign and domestic capital inflows into India's infrastructure sector, particularly in roads, power, renewable energy, and urban development projects. By providing a longer horizon for investors, the government aims to reinforce confidence and encourage long-term financing for infrastructure, which remains central to India's growth strategy.
Clause (23FE) of the Income-tax Act grants income-tax exemptions on dividends, interest, and long-term capital gains earned by specified foreign and domestic funds from eligible infrastructure investments, subject to compliance with prescribed conditions.
The revised circular clarifies that references to March 31, 2024, in the earlier guidelines shall now be read as March 31, 2030, with effect from April 1, 2025.
This step strengthens India's appeal as a destination for global institutional investors and aligns with the government's push to attract long-term capital for infrastructure financing.
Official copy of the circular has also been attached
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