The Central Board of Direct Taxes (CBDT) has issued a set of guidelines on the Income Tax Act provisions giving tax exemption to sovereign wealth funds (SWFs) and pension funds on their income from infrastructure investments in India.
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The guidelines issued on Monday seek to bring more clarity on aspects like the riders attached to the tax incentive such as a three-year lock-in period for the investments, computation of capital gain from transfer of investments, computation of the income from eligible investments on which tax exemption is available, tax audits and quarterly statement of investments. The guidelines explain what would be the consequences of not meeting different requirements set out in the Income Tax Act and in the rules.
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