CBDT amended Income-tax Rules 1962 regarding Infrastructure Debt ...

Infrastructure Debt Fund Guidelines Updated: New Rules for Post-Operational Projects and Investment Restrictions Under Section 10(47)

February 8, 2025

Notifications Income Tax

CBDT amended Income-tax Rules 1962 regarding Infrastructure Debt Fund (IDF) guidelines under section 10(47). IDFs must operate as NBFCs under RBI regulations, investing exclusively in post-operational infrastructure projects with minimum one-year commercial operations or toll-operate-transfer projects. Funding mechanisms include rupee/foreign currency bonds, zero coupon bonds per Rule 8B, and external commercial borrowings with minimum 5-year tenor. ECBs cannot be sourced from foreign branches of Indian banks. Investment restrictions apply where specified shareholders (holding >=30% voting power) or associated enterprises have substantial interests. The amendment introduces stricter operational parameters and clarifies funding mechanisms while maintaining regulatory oversight by RBI and alignment with FEMA regulations.

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CBDT amended Income-tax Rules 1962 regarding Infrastructure Debt ...

Infrastructure Debt Fund Guidelines Updated: New Rules for Post-Operational Projects and Investment Restrictions Under Section 10(47)

February 8, 2025

Notifications Income Tax

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