Notification of Sovereign Wealth Fund under section to(23FE) of the Income-tax Act, 1961

Circular No. 15 of 2020

F No 370142/26/2020-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(Tax Policy & Legislation Division)

New Delhi, 22nd July, 2020

Notification of Sovereign Wealth Fund under section to(23FE) of the Income-tax Act, 1961
The Finance Act, 2020, inter alia, inserted clause (23FE) in section 10 the Income-tax Act,
1961 (the Act) to provide for exemption to income of a specified person in the nature of dividend,
interest or long-term capital gains arising from investment made by it in India if the investment is
made in specified infrastructure business (including business notified vide Notification No 44/2020
dated 06.07.2020, i.e., Infrastructure sub-sectors mentioned in Harmonised Master List updated as
on 13.08.2018) during the period from 01.04.2020 to 31.03.2024, and held for at least three years.

  1. Specified person for this purpose has been defined to mean wholly owned subsidiaries of
    Abu Dhabi Investment Authority (ADIA), notified Sovereign Wealth Fund (SWF) and notified
    Pension Funds (PF), which fulfil conditions specified in the clause or to be prescribed for the PF.
  2. In order to facilitate the process of notification of the SWF, the Board, in exercise of
    powers conferred under section 119 of the Act, hereby specifies that the SWF shall file application
    in the Form I in the Annexure to this circular. The Form I shall be filed with the Member
    (Legislation), Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance,
    orth Block, ew Delhi during the financial year 2020-21 and thereafter to the Member, CBDT
    having supervision and control over the work of Foreign Tax and Tax Research Division.
  3. Further, the SWF shall be required to file return of income along with audit report. It shall
    also be required to file a quarterly statement within one month from the end of the quarter
    electronically in Form 1I in respect of each investment made during the quarter in the ArUlcxure to
    this circular. The Principal Director General of Income Taxi Director General of Income Tax
    (Systems) shall lay down the necessary procedure for furnishing and verification of the Form II.

Enclosure: ANNEXURE.

(Niraj Kumar)
Deputy Secretary (TPL )-1


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