SWFs Seek Tax Exemption Extension for Infrastructure in Budget 2025

Last updated: 24 January 2025


Quick Summary
As the Union Budget 2025 approaches, foreign sovereign wealth funds (SWFs) and pension funds are actively seeking an extension of their tax exemption on infrastructure investments in India. This benefit, currently under Section 10(23FE) and expiring on March 31, 2025, has attracted significant foreign capital. Industry experts are calling for a three-year extension to ensure continued investment in India's crucial infrastructure sector, warning that without it, foreign funds could be deterred by higher tax rates and a weakening rupee.

As the Union Budget 2025 approaches, foreign sovereign wealth funds (SWFs) and pension funds are lobbying for an extension of the tax exemption on their investments in India's infrastructure sector. The current tax benefit, granted under Section 10(23FE) of the Income Tax Act, is set to expire on Ma
Daily Limit Reached

You have reached your daily limit of 2 Free News

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Broadcasts
  • Daily E-Newsletter
  • Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now

Already a PRO member? Login here for an ad-free experience.

FAQ :

SWFs are seeking an extension for the tax exemption on their income derived from investments in India's infrastructure sector, currently provided under Section 10(23FE) of the Income Tax Act.

The current tax exemption is set to expire on March 31, 2025.

Industry experts and stakeholders are calling for a three-year extension of the tax exemption.

The exemption currently covers income such as dividends, interest, and long-term capital gains from infrastructure investments made by notified SWFs and pension funds.

If the exemption is not extended, sovereign wealth funds will be subject to standard tax rates for offshore investors, which experts warn could deter foreign investment, especially given the weakening rupee and softer market conditions.

Yes, industry experts suggest broadening the exemption scope to include offshore platforms where SWFs often pool funds, and addressing tax provisions related to indirect transfers through offshore entities.




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.

Click here to Login and post comments    OR



More »


Popular News





CCI Pro



Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details