India Tax Agency Extends Investment Deadline for Sovereign, Pension Funds for Income Tax Exemption Purposes

The Indian Central Board of Direct Taxes Sept. 1 issued Notification No. 141/2025, on the Income-tax (Twenty-Fifth Amendment) Rules, 2025. Section 10(23FE) of the Income-tax Act, 1961 provides a tax exemption on income earned by specified funds if they invest in eligible infrastructure businesses or notified categories in India. The rules include a measure to extend the investment deadline for sovereign and pension funds under Section 10(23FE) to: 1) financial year (FY) 2030-2031, from FY 2024-2025; and 2) assessment year (AY) 2031-2032, from AY 2025-2026. The rules enter into force on the date of their publication in the Official Gazette. ...