<ul data-eligibleForWebStory="false"><li>Sovereign wealth funds and pension funds will now have an extended deadline of March 31, 2030 to invest in India and receive income tax exemptions.</li><li>The exemption applies to funds such as MIC Redwood 1 RSC Limited Abu Dhabi, Dagenham Investment Pte. Ltd, AIMCo India Infrastructure Limited, Canada Pension Plan Investment Board, Caisse de dépôt et placement du Québec, Bricklayers Investment Pte. Ltd, Norfund, and others.</li><li>The mechanism introduced in 2020 aims to encourage investments in India's infrastructure sector, with specific conditions for the funds to avail of the exemption, including no engagement in commercial activities beyond the investment.</li><li>The amendments by the Finance Act 2024 reclassify capital gains from unlisted debt securities as short-term gains, affecting the taxation of SWFs and PFs. Finance Act 2025 ensures that long-term capital gains from investments in India remain tax-exempt under clause (23FE) of section 10 until March 31, 2030.</li></ul>

Sovereign wealth funds, pension funds to get 5 more years to invest for IT exemptions

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