The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued Notification No. 95/2025-Income Tax dated 11th July 2025, amending an earlier notification (No. 112/2021) concerning the income tax exemption under Section 10(23FE) of the Income-tax Act, 1961. This section pertains to tax exemptions for income earned by specified sovereign wealth funds, pension funds, and other notified entities from investments in infrastructure and other eligible sectors in India. The amendment extends the original exemption deadline from “31st March, 2025” to “31st March, 2030,” thereby allowing qualified entities to benefit from the exemption for an additional five years. The updated provisions are applicable prospectively from 1st April 2025 and do not impact any actions undertaken before the publication of this notification. The principal notification was originally issued on 16th September 2021 and was earlier amended on 18th July 2024. This extension is aligned with the government’s broader objective to promote long-term investments and facilitate foreign capital inflow into key development sectors by providing a more extended tax incentive window.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 95/2025 – Income Tax | Dated: 11th July, 2025
S.O. 3149(E).— In exercise of the powers conferred by sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) [Notification No. 112/2021/F. No. 370142/39/2021-TPL] number S.O. 3801(E), dated the 16th September, 2021 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), except as respects things done or omitted to be done on and from the 1st April, 2025 till the date of publication of this notification in the Official Gazette, namely:––
In the said notification, in the opening paragraph, for the figures, letters and words “31st day of March, 2025”, the figures, letters and words “31st day of March, 2030” shall be substituted.
[No. 95 /2025/F. No. 500/Misc./S10(23FE)/FT&TR-II]
BAHNI TELENGA, Under Secy.
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 3801(E), dated the 16th September, 2021 and subsequently amended vide notification number S.O.2851(E), dated the 18th July, 2024.
