The Central Government has granted tax exemption to five Singapore-based Sovereign Wealth funds (SWFs) for their earnings from infrastructure investment made in India between now and March 2024.
As separate orders from Income tax department issued, stated that Singapore’s based companies Chiswick, Stretford, Dagenham, An abera and Bricklayers have been given relief under Section 10 of the Income Tax Act.
Accordingly, investors will get full tax exemption on income from interest, dividend and long-term Capital gains.
Further, the tax concession comes despite the stated policy to phase out tax breaks and indicates policymaker’s intent to have more sources of long-term finance for projects.
However, the tax break is granted subject to regular disclosure of investment and a three-year lock in period of investment.