CBDT Notifies New Tax Rules: 6-Year Extension Under Section 10(23FE)



Quick Summary
The Central Board of Direct Taxes (CBDT) has introduced new tax rules, extending the benefits under Section 10(23FE) for notified funds by six years. This amendment effectively pushes the relevant financial years from 2024-25 to 2030-31 and 2025-26 to 2031-32. The change aims to provide long-term certainty for sovereign wealth funds, pension funds, and similar investors, encouraging further foreign investment in India's infrastructure and priority sectors.

The Central Board of Direct Taxes (CBDT) has issued the Income-tax (Twenty-Fifth Amendment) Rules, 2025, through a notification dated September 1, 2025, published in the Gazette of India. The amendment, made under the powers conferred by Section 295 of the Income-tax Act, 1961, relates to clause (23FE) of Section 10, which provides tax exemptions for certain notified funds such as sovereign wealth funds and pension funds.

New Tax Rules: 6-Year Extension for Sovereign Wealth Funds

As per the amendment, several timelines under Rule 2DCA of the Income-tax Rules, 1962 have been extended:

  • References to the financial years 2024-25 have been substituted with 2030-31.
  • References to the financial years 2025-26 have been substituted with 2031-32.
  • Similarly, in the explanation clauses, the year 2024 has been replaced with 2030.

The move essentially provides a six-year extension for eligible entities to avail of the tax exemption benefits under Section 10(23FE). This step is expected to give long-term certainty to sovereign wealth funds, pension funds, and similar notified investors, encouraging greater foreign investment in infrastructure and priority sectors in India.

This amendment follows the last modification of the Income-tax Rules, 1962, vide Notification G.S.R. 566(E) dated August 21, 2025.

Official copy of the notification has been attached 

FAQ :

The CBDT has extended the tax exemption period for certain notified funds, such as sovereign wealth funds and pension funds, by six years under Section 10(23FE).

References to financial years 2024-25 have been changed to 2030-31, and 2025-26 have been changed to 2031-32. The year 2024 in explanation clauses has been replaced with 2030.

The extension aims to provide long-term certainty to eligible entities and encourage greater foreign investment in India's infrastructure and priority sectors.

Notified funds such as sovereign wealth funds and pension funds are eligible for the tax exemption benefits under Section 10(23FE).

The amendment is made under Section 295 of the Income-tax Act, 1961, and relates to clause (23FE) of Section 10.

Attached File : 671907_25342_265864.pdf



News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :


More »


Popular News





CCI Pro



Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details