Save Tax With Wealth Funds

India needs huge investments in its ailing infrastructure and the government is doing whatever it takes to make it attractive for global investors to participate. India is expected to be the world’s third-largest construction market by 2022 and will require an investment of over $770 bn in the infrastructure sector for sustainable development (ibef.org). Budget 2020 gave a tax relief of 100 per cent exemption for Sovereign Wealth Funds (SWF) on passive incomes--interest, dividends and capital gains-- earned from investment in infrastructure and other notified sectors. All investments made on or before March 31, 2024 are eligible for this tax relief provided, they are held for a minimum period of three years. Given the present scenario, the time limit for investment is likely to be extended by a year or two. These government-backed wealth funds are the National Savings Certificate...