Budget 2020: Tax exemption for sovereign funds to boost India infra play
MUMBAI: The decision of central government to grant 100% tax exemptions for sovereign wealth funds for their investments in infrastructure sector is expected to give a boost to the infra investments in India. Besides the exemption, abolition of dividend distribution tax (DDT) is also will give benefits to the global yield-seeking infrastructure investors in India.
On Saturday, finance minister Nirmala Sitharaman had announced the tax exemption for infrastructure investments in India.
“In order to incentivise the investment by the Sovereign Wealth Fund of foreign governments in the priority sectors, I propose to grant 100% tax exemption to their interest, dividend and capital gains income in respect of investment made in infrastructure and other notified sectors before 31st March, 2024 and with a minimum lock-in period of 3 years,” said Finance Minister in her budget speech.
