Income Tax Update: Filing of Form I SWF now available for Online Filing

The Income Tax Department has notified that the Filing of Form I SWF is now available for Online Filing.

The Tax Department has notified the Sovereign Wealth Fund via issuing a Circular.

The Circular Read as follows:

The Finance Act, 2020, inter alia, inserted clause (23FE) in section 10 of the Income-tax Act, 1961 (the Act) to provide for exemption to income of a specified person in the nature of dividend, interest or long-term capital gains arising from investment made by it in India if the investment is made in specified infrastructure business (including business notified vide Notification No 44/2020 dated 06.07.2020, i.e., Infrastructure sub-sectors mentioned in Harmonised Master List updated as on 13.08.2018) during the period from 01.04.2020 to 31.03.2024, and held for at least three years.

Specified person for this purpose has been defined to mean wholly owned subsidiaries of Abu Dhabi Investment Authority (ADIA), notified Sovereign Wealth Fund (SWF) and notified Pension Funds (PF), which fulfil conditions specified in the clause or to be prescribed for the PF.

In order to facilitate the process of notification of the SWF, the Board, in the exercise of powers conferred under section 119 of the Act, hereby specifies that the SWF shall file application in Form I in the Annexure to this circular. The Form I shall be filed with the Member (Legislation), Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, North Block, ew Delhi during the financial year 2020-21 and thereafter to the Member, CBDT having supervision and control over the work of Foreign Tax and Tax Research Division.

Further, the SWF shall be required to file a return of income along with an audit report. It shall also be required to file a quarterly statement within one month from the end of the quarter electronically in Form II in respect of each investment made during the quarter in the Annexure to this circular. The Principal Director General of Income Tax/ Director General of Income Tax (Systems) shall lay down the necessary procedure for furnishing and verification of the Form II.

For Official Circular Download PDF Given Below: