| Key Aspect | Details |
|---|---|
| Event | Tax exemption extended for Sovereign Wealth Funds (SWFs) and Pension Funds |
| Date of Announcement | July 12, 2025 |
| Exemption Period | Extended until March 31, 2030 |
| Objective | To attract long-term foreign investment in infrastructure sectors like energy, telecom, and logistics |
| Scope of Exemption | Income from dividends, interest, and long-term capital gains earned by specified foreign funds |
| Legal Provision | Section 10(23FE) of the Income Tax Act |
| Initial Implementation | Introduced in 2020 for investments made between April 1, 2020, and March 31, 2024 |
| First Extension | Extended to March 31, 2025, as per the 2024-25 Interim Budget |
| Current Extension | Extended until March 31, 2030, as notified by the Department of Revenue |
| Economic Impact | Expected to boost investor confidence and ensure steady capital inflow for infrastructure development |
| Growth in Investments | Assets held by SWFs in Indian companies rose by 60% year-on-year, reaching ₹4.7 lakh crore by April 2024 (Source: NSDL data) |
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