CBDT Amends Notification No. 44/2020 Under Section 10(23FE) of the Income-tax Act, 1961
The Central Board of Direct Taxes (CBDT) issued Notification No. 127/2024 on December 11, 2024, amending the earlier Notification No. 44/2020 dated July 6, 2020, under section 10(23FE) of the Income-tax Act, 1961.
Key Amendments:
- Reference Update:
The reference “F. No. 13/3/2017-INF dated 13th August 2018” is replaced with “F. No. 13/1/2017-INF dated 11th October 2022”.
This amendment aligns the notification with the updated Harmonised Master List of Infrastructure Sub-sectors issued by the Ministry of Finance.
- Effective Date:
The notification is effective from April 1, 2021, and applies to Assessment Year 2021-22 and subsequent years.
- Scope of Infrastructure Sub-sectors:
The notification specifies that businesses eligible under item (b) of sub-clause (iii) of clause (23FE) must be engaged in infrastructure sub-sectors listed in the updated Harmonised Master List.
However, it explicitly excludes businesses already covered under item (b) of sub-clause (iii) in the existing provisions of section 10(23FE).
Implications of the Amendment:
The change ensures clarity and alignment with the latest infrastructure classifications for businesses claiming tax exemptions under section 10(23FE).
Taxpayers engaged in infrastructure sub-sectors should verify their eligibility under the updated reference to the Harmonised Master List.
This amendment reflects the government’s continued effort to streamline tax provisions for businesses operating in infrastructure, ensuring consistency with updated regulatory frameworks.
