The Ministry of Finance has issued a notification on July 6, 2020 (“Notification”).
In exercise of the powers conferred by item (b) of sub-clause (iii) of clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government specified business, for the purposes of said item (b), to be the business which is engaged in the infrastructure sub-sectors mentioned in Updated Harmonised Master List of Infrastructure Sub-sectors in the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, published in Gazette of India, Extraordinary, vide number, F.No.13/3/2017-INF dated August 13, 2018.
The reference to the infrastructure sub-sectors in the said Harmonised Master List of Infrastructure Sub-sectors shall not include the business already provided in the said item (b).
This notification shall come into force from April 1, 2021 and shall be applicable for assessment year 2021-22 and subsequent assessment years.
Hence, specified persons, including sovereign wealth funds and pension funds, making investment in the aforesaid sectors would also be able to claim tax exemption.
