The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has extended the income tax exemption timelines for sovereign wealth and pension funds by six years. This was announced via the Income-tax (Twenty-Fifth Amendment) Rules, 2025, which were notified on September 1, 2025.
The amendment specifically extends the benefits under Section 10(23FE) of the Income-tax Act, 1961, a provision designed to attract long-term investments from global institutional investors into India’s infrastructure and priority sectors.
Key changes in the new rules include:
- The deadline for investments to be made for tax exemption has been pushed back by six years.
- References to FY 2024-25 are now replaced with FY 2030-31.
- References to FY 2025-26 are now replaced with FY 2031-32.
- The year 2024 in the explanatory clauses now reads as 2030.
This six-year extension provides long-term policy certainty, boosting investor confidence and encouraging a sustained flow of capital into India’s critical sectors.