The Ministry of Finance, through the Central Board of Direct Taxes, issued a notification on July 11, 2025, to amend Section 10(23FE) of the Income-tax Act, 1961. This amendment extends a previous notification (S.O. 4592(E), dated November 2, 2021) that provides an income tax exemption. The original exemption, set to expire on March 31, 2025, has now been prolonged to March 31, 2030. This change applies retrospectively from April 1, 2025, encompassing the period until the publication date of this new notification. The extension primarily impacts the eligibility period for certain incomes to be exempt under sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10, affecting various entities and their financial planning. This is the second amendment to the principal notification, with the first amendment occurring on July 18, 2024.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 97/2025 – Income Tax | Dated: 11th July, 2025
S.O. 3151(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. 130 /2021/ F. No. 370142/50/2021-TPL] number S.O. 4592(E), dated the 2nd November, 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. 97/2025/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. 4592(E), dated the 2nd November, 2021 and subsequently amended vide notification number S.O. 2853(E), dated the 18th July, 2024.
