GST Reimbursement Denied for Pre-GST Contracts with All-Inclusive Tax Clauses Facts The Contract: The Water Resources Department awarded works contracts based on bids submitted before the implementation of GST (pre-July 1, 2017). The Tax Clause: Clause 2.17.1 of the agreement explicitly stated that the contractor would bear all tax liabilities and barred any subsequent claims… Read More »
Withdrawal of Exemption If the conditions of eligibility or investment are violated in any year, the exemption claimed in previous years shall be withdrawn and deemed as income in the year of violation.
Minimum Holding Period The investment must be held for at least 3 years to avail of the exemption.
Qualifying Income for Exemption The following income is exempt: (a) Dividends (b) Interest (c) Long-term capital gains (even if deemed as short-term under Section 50AA) (d) Any income received from InVITs in respect of units held
Mode of Investment Investments must be in the form of: (a) Debt (b) Share capital (c) Units
Timeframe for Investment Investments must be made between 01-04-2020 and 31-03-2030.
Eligible Infrastructure Entities Exemption is available on investments made in: (a) Infrastructure Investment Trusts (InVITs) (b) Enterprises engaged in developing, operating or maintaining infrastructure as defined in Section 80-IA(4)(i) or as notified by CBDT (‘Infrastructure Development Entities’) (c) Domestic companies (registered on or after 01-04-2021) with ≥75% downstream investment in infrastructure development entities (d) Infrastructure finance companies… Read More »
Eligible Persons The exemption is available to the following foreign entities: (a) Sovereign Wealth Funds (SWFs) (Investment funds owned and controlled by the Government of a foreign country) (b) Wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) (c) Pension Funds created or established under the laws of a foreign country (d) Public Investment… Read More »
Exemption to Foreign Funds Investing in Indian Infrastructure Entities [Section 10(23FE)] Introduction Section 10(23FE) provides tax exemption to specified foreign investors on certain income arising from investments in notified Indian infrastructure entities. The provision aims to encourage long-term foreign investment in India’s infrastructure sector.
Important Income Tax Case Laws 01.05.2026 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Sec 11 / 10B CIT (Exemption) v. Manav Vikas Bahuudeshiya Click Here Condonation of Delay: (SC Dismissed) Delay in filing Form 10B due to bona fide CA oversight regarding new online portal must be condoned. Income Tax Sec… Read More »