The Central Board of Direct Taxes (CBDT) has issued Notification No. 70/2026 dated June 1, 2026, specifying certain infrastructure-related businesses as eligible businesses under the provisions of the Income-tax Act, 2025.
The notification has been issued by the Ministry of Finance, Department of Revenue, in exercise of powers conferred under Section 11(5) read with Note 5(d)(ii) of Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025.
What Does the Notification Provide?
Under the notification, the Central Government has formally recognized businesses engaged in infrastructure sub-sectors listed in the Updated Harmonised Master List of Infrastructure Sub-Sectors issued by the Department of Economic Affairs (DEA) through notification F.No.13/1/2025-IPP dated September 19, 2025.
These infrastructure businesses, except those already covered under Note 5(d)(i) of Schedule V, will now qualify as "specified businesses" for the purposes of Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025.
The move broadens the scope of eligible infrastructure activities recognized under the new tax framework and aligns tax provisions with the government's infrastructure development agenda.
Alignment with Infrastructure Policy
The notification links tax eligibility directly to the Updated Harmonised Master List of Infrastructure Sub-Sectors maintained by the Department of Economic Affairs. This list covers a wide range of infrastructure segments such as transport, energy, water and sanitation, communication, social infrastructure, and other strategic sectors recognized by the Government of India.
By adopting this harmonized list, the government aims to ensure consistency across various policy, financing, and taxation frameworks applicable to infrastructure projects.
Impact on Infrastructure Businesses
The notification is expected to benefit businesses operating in eligible infrastructure sub-sectors by providing clarity regarding their status under Schedule V of the Income-tax Act, 2025. It may also facilitate greater investment participation in infrastructure projects by extending the tax treatment available to specified businesses under the Act.
Industry stakeholders have welcomed such measures as they help create a more predictable regulatory and tax environment for long-term infrastructure investments.
Effective Date
The CBDT has clarified that the notification shall come into force from the date of its publication in the Official Gazette, i.e., June 1, 2026.
Official copy of the notification is as follows
CAclubindia
