- Shweta Verma
April 07, 2026
Circular No. 3/2026 : Notification of Sovereign Wealth Fund under Schedule V
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This circular, issued by the CBDT in March 2026, streamlines the tax exemption process for Sovereign Wealth Funds (SWFs) investing in India's infrastructure sector under the Income-tax Act, 2025. To qualify for exemptions on dividends, interest, and capital gains, SWFs must be notified by the government and meet specific investment timelines (April 2020 to March 2030) and holding periods (minimum three years). The circular introduces two key compliance forms: Form I for new funds seeking notification and Form II for all notified funds to report their investments on a quarterly basis. Notably, funds previously notified under the 1961 Act are grandfathered in and do not need to re-apply via Form I, though they must comply with the new quarterly reporting requirements starting April 1, 2026.
https://www.incometaxindia.gov.in/documents/d/guest/circular-3-2026-pdf
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Shweta Verma
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