Government of India issues notification regarding sovereign wealth funds and global pension funds

Jul 9, 2020

In order to boost foreign investment in India’s infrastructure sector, the government has issued a notification that, effective from April 1, 2021, sovereign wealth funds and global pension funds will be fully exempt from tax in respect of their incomes arising from interest and dividend, and capital gains arising from their investments in India.

Reports indicate that investments made by such funds either, directly or through vehicles such as Category-I or Category-II Alternative Investment Funds, into as many as thirty-four (34) defined infrastructure sectors will qualify for the tax exemption.

Sovereign wealth and pension funds have deep pockets and are patient long-term investors. Giving them such a huge tax benefit will surely incentivize them to make big-ticket investments in infrastructure, including warehousing, logistics, cold chains, energy, hospitals, telecom, educational institutions, etc.

More News

Majmudar & Partners IFLR1000 2022 Rankings

Majmudar & Partners has been recognized among the IFLR1000 2022 rankings across fields of practice and sectors. The firm has been ranked for its excellence in practice areas such as M&A, Banking, Private Equity, and Capital Markets among others ones. Akil...

read more