Sovereign Wealth Funds granted LTCG benefits on investments in India

INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI

About Us

Newsletters

NEWS FLASH

I-T-Interest income earned on deposits maintained due to business or statutory requirements where inextricably linked to business activity, is eligible for deduction: ITAT (See Breaking News)

I-T - Section 163(1)(c), a person can be treated as agent of non-resident only if non-resident receives income directly or indirectly from or through such person or if there exists a business connection: ITAT (See Breaking News)

DTAA - Virtual Service Permanent Establishment (VSPE) cannot be read into provisions of DTAA, as Article 5 of India-UK Treaty makes no provision for VSPE: ITAT (See Breaking News)

I-T - Assessment order passed after expiry of time limit stipulated in section 153 is barred by limitation and is invalid in law, even if it adheres to one-month timeline within section 144C(13): ITAT (See Breaking News)

I-T - If assessee possesses sufficient own interest-free funds that exceed interest-free advances, it is presumed that advances were made from these own funds, and no disallowance of interest on borrowed funds can be made: ITAT (See Breaking News)

Residency of Binny Bansal of Flipkart-fame - ‘Meaning of Being outside India'! (See TII Edit)

TP - Section 92BA(i), governing specified domestic transactions, stands omitted without any saving clause & therefore, is to be treated as non-existent in statute - additions based on Section 92BA quashed: ITAT (See Breaking News)

TP - Transfer pricing adjustment on international transaction involving payment of interest to AE is not warranted if assessee has already suo motu disallowed entire interest amount u/s 94B: ITAT (See Breaking News)

TPO - In case involving reference to Transfer Pricing Officer, time limit for completing assessment is extended by 12 months as per Section 153(4): ITAT (See Breaking News)

I-T - Appeal against a final assessment order lies before the Commissioner Appeals, and not directly before the Tribunal: ITAT (See Breaking News)

I-T - Pure error of law based on plausible understanding of law, if income was fully disclosed in accounts and neither concealed nor inaccurately reported, does not attract Sec 271(1)(c): HC (See Breaking News)

I-T - Period of limitation for passing final assessment order u/s 144C(13) must be determined by combined and harmonious reading of Section 144C and Section 153: ITAT (See Breaking News)

TP - As is trite law, ALP of royalty payments to AEs should be determined using the TNMM method: ITAT (See Breaking News)

DTAA - In absence of statutory time stipulation, delayed filing of Form 10F cannot be treated as fatal defect so as to deny treaty benefits, particularly when tax residency & eligibility under DTAA are not in dispute: ITAT (See Breaking News)

I-T - Competent Authority shall issue Nil Tax Withholding Certificate within stipulated time, if delay will practically render assessee's case infructuous and will be of no avail as F.Y will be over: HC (See Breaking News)

I-T - Final assessment order passed beyond time limit prescribed u/s 153 is barred by limitation and is invalid, even if internal timelines within Sec 144C procedure were adhered to: ITAT (See Breaking News)

DTAA - Since payment for standard transponder services does not involve any secret process, it is not taxable as royalty in India under Treaty: ITAT (See Breaking News)

INTL - Expenditure incurred wholly & exclusively for business purpose cannot be disallowed merely because it was not necessary or profitable: ITAT (See Breaking News)

I-T - Section 144C and Section 153 are not mutually exclusive but are mutually inclusive and must be read harmoniously: ITAT (See Breaking News)

TP - Mere reclassification of Compulsorily Convertible Debentures into equity & debt components under Ind-AS does not alter their intrinsic nature as debt instruments until actual conversion: ITAT (See Breaking News)

TP - Addition framed TPO invalid where transaction in question is covered by binding Advance Pricing Agreement between assessee & CBDT as per Section 92CC: ITAT (See Breaking News)

TII SEARCH

Home >> News Brief


Sovereign Wealth Funds granted LTCG benefits on investments in India By TII News Service Feb 01, 2025 , New Delhi
Untitled Document Clause (23FE) of section 10 of the Act provides for the exemption to specified persons from the income in the nature of dividend, interest, long-term capital gains or certain other incomes arising from an investment made by it in India. Specified persons inter alia are Sovereign Wealth Fund (SWF), Pension Fund (PF) which fulfills conditions prescribed therein and are specified for this purpose by the Central Government through notification in the Official Gazette. This provision was introduced through the Finance Act, 2020 to encourage investments of SWF and PF into infrastructure sector of India. Sub-clause (i) of clause (23FE) of section 10, inter alia, provides that investment is made on or after the 1st day of April, 2020 but on or before the 31st day of March, 2025. Suggestions have been received that given the long-term nature of infrastructure investments and the role of foreign SWFs and PFs in financing such projects, the deadline for investment under clause (23FE) of section 10 be extended. This will provide the stability and time frame necessary for global investors to make substantial contribution to India’s infrastructure development. Further, the amendments to section 50AA by Finance (No. 2) Act, 2024, have re-classified all the capital gains from unlisted debt securities as short-term capital gains, irrespective of the holding period. This will result in the long term capital gains from investment in unlisted debt investments to be taxable in the hands of SWFs and PFs. Prior to the said amendments, notified SWFs or PFs were eligible for exemptions on long-term capital gains from unlisted debt securities under clause (23FE) of section 10. The Finance Bill therefore, proposed to amend clause (23FE) of section 10, so as to provide that (a) long-term capital gains (whether or not such capital gains are deemed as short-term capital gains under section 50AA) arising from an investment made by it in India, shall inter alia not be included in the total income of a specified person under clause (23FE) of section 10; and (b) the date of investment under the said clause shall extended from 31st day of March, 2025 to 31st day of March, 2030. These amendments will take effect from the 1st day of April, 2025.

INTL TAXATION	INTL MISC	TP	FDI	LIBRARY	VISA	BIPA	NRI	TII
DTAA Circulars (I-T Act, 1922) Limited Treaties Other Treaties TIEAs Notifications Circulars Relevant Sections of I-T Rules,1962 Instructions Administrative Orders DRP Panel I-T Act, 1961 MLI Relevant Portion of I-T Act,1922 GAAR MAP	OECD Conventions Draft Guidelines DTC Bill Committee Reports FATCA Intl-Taxation Finance Acts Manual on EoI UN Model Taxation Miscellaneous Cost Inflation Index Union Budget Information Security Guidelines	APA Annual Report APA Rules Miscellaneous Relevant Sections of Act Instructions Circulars Notifications Draft Notifications Forms TP Rules APA FAQ UN Manual on TP Safe Harbour Rules US Transfer Pricing	FEMA Act Exchange Manual Fema Notifications Master Circulars Press Notes Rules FDI Circulars RBI Circulars Reports FDI Approved RBI Other Notifications FIPB Review FEO Act	INTELLECTUAL PROPERTY CBR Act NBFC Report Black Money Act PMLA Instruction PMLA Bill FM Budget Speeches Multimodal Transportation Vienna Convention EXIM Bank LoC Manufacturing Policy FTDR Act, 1992 White Paper on Black Money Posting Policy PMLA Cases Transfer of Property MCA Circular Limitation Act	Type of Visa SSAs EPFO Acts FAQs Rules Guidelines Tourist Visa Notifications	Arbitration Model Text Agreements	Relevant Portion of I-T Act I-T Rules, 1962 Circulars MISC Notification	About Us Contact Us


A Taxindiaonline Website. Copyright © 2010-2025 \| Privacy Policy \| Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.

TIOL GROUP WEBSITES