Tax sops for sovereign, pension funds extended by a year

The Central Board of Direct Taxes (CBDT) has extended tax exemption for sovereign wealth funds and pension funds in India until March 31, 2025. The exemption allows these funds to claim tax benefits on dividend income, interest income, and long-term capital gains from infrastructure investments made by these entities in India. The move was introduced in 2020 under Section 10 (23FE) under the Income Tax Act to encourage long-term investments in critical infrastructure projects.