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 (NBFCs or an infrastructure debt fund with ≥90% lending to infrastructure development entities)
(e) Category I or II AIFs with ≥50% investment in the above entities, trust or funds.
CBDT Circular No. 9/2022, dated 09-05-2022, clarifies that the exemption applies even to secondary market investments or downstream investments through AIFs, finance companies, or investment companies.