The Central Board of Direct Taxes (CBDT) on March 30, 2026, issued the notification regarding the Notification of Sovereign Wealth Fund under Schedule V [Table: SI. No. 7.Note 5(a)(ii)(G)] of the Income-tax Act, 2025.
The following has been stated namely: -
• The Income-tax Act, 2025 grants exemption to specified persons (including Sovereign Wealth Funds) on income like dividend, interest, certain sums, and long-term capital gains from investments in specified infrastructure businesses in India, made between April 01, 2020 and March 31, 2030, and held for at least 3 years.
• The exemption applies to notified Sovereign Wealth Funds (SWFs) that meet prescribed conditions under the Act.
• SWFs must apply for notification by submitting Form I to the Central Board of Direct Taxes (CBDT).
• Notified SWFs must:
o File income tax returns with audit report
o Submit a quarterly statement (Form II) within one month of each quarter for investments made.
• Applicability & categories:
o Existing SWFs (notified under old law) need not reapply, but must file Form II.
o New SWFs must file Form I + Form II compliance.
Circular effective from April 01, 2026 for AY 2026–27 onwards.
[Notification No. 370142/46/2025-TPL]
