TaxTMI 
TaxTMI 
Rationalisation of provisions related to Sovereign Wealth Fund (SWF) and Pension Fund (PF)
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....rom the income in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India. Specified persons are SWF or PF which fulfils conditions prescribed therein and are specified for this purpose by the Central Government through notification in the Official Gazette. This provision was introduced through the Finance Act, 2020 to encourage investments of SWF....
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....ment Trust (InvIT). (c) Exemption under this clause shall be calculated proportionately, in case if aggregate investment of AIF in infrastructure company or companies or in InvIT is less than 100%. • Investment through holding company Presently, SWF/PFs are not allowed to invest through holding company. It is proposed to allow the same subject to the following conditions: (a) Holding ....
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....if aggregate lending of NBFC-IDF or NBFC-IFC in infrastructure company or companies is less than 100%. • Loan or borrowings by SWF/Pension Fund Presently, SWF/PFs are not allowed to have loans or borrowings or deposit or investments as there is a condition that no benefit should enure to private person. It is proposed to provide that there should not be any loan or borrowing for the purpo....
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....terprise or an entity or a category I or II Alternative Investment Fund or an Infrastructure Investment Trust or a domestic company or an Infrastructure Finance Company or an Infrastrure Debt Fund, in which the SWF or PF, as the case may be, has made the investment, directly or indirectly, under the provisions of this clause. • Liable to Tax Presently, some PFs are liable to tax in their ....