Income of a specified person in the nature of dividend or long-term capital gains arising from an investment made by it in India - Central Government specifies the Pension fund, namely, 1000242244 Ontario Inc. as the specified person for the purposes in respect of the eligible investment made by it in India. - 128/2022 - Income Tax

Canadian pension fund gets tax exemption under section 10(23FE) for Indian investments until March 2030

The Central Government designated a Canadian pension fund as a specified person under section 10(23FE) of the Income-tax Act, 1961, enabling tax exemption on dividend and long-term capital gains from eligible investments in India made between the notification date and March 31, 2030. The designation requires compliance with ten conditions including filing returns, maintaining segmented accounts, remaining regulated under Ontario law, using assets solely for retirement benefits, avoiding borrowings for Indian investments, and holding investments for minimum three years. Violation of any condition renders the entity ineligible for tax exemption.