Around 24 global investors, which mostly included sovereign wealth funds (SWFs) and pension funds, have sought tax benefits for investing in Indian infrastructure projects. Of these, 15 received approval in May. Canadian pension fund Indo-Infra Inc received exemptions on income from dividend, interest or long-term capital gains arising from investments in specific infrastructure projects in India till 2024. The Finance Act 2020 had introduced a section in the Income Tax Act 1961, providing tax benefits to notified funds from 1 April 2020 to 31 March 2024, subject to fulfilment of certain conditions. In this regard, notifications had been issued by the Central Board of Direct Taxes on July 22 and August 17 last year, mentioning the eligibility criteria for SWFs and pension funds. An official told the media in the second week of May, the government granted special dispensation to five funds—SWF of the ministry of economy and finance (South Korea), OMERS Administration Corp (Canada), CDC Group Plc, Public Sector Pension Investment Board (Canada), and Government Employees Superannuation Board (Australia). The official further said in the first week of May, nine funds were notified. Five were from Singapore, including Stretford Investment Pte Ltd, Chiswick Investment Pte Ltd, Dagenham Investment Pte Ltd, Bricklayers Investment Pte Ltd and Anahera Investment Pte Ltd. The other four were Canadian pension funds—the CDPQ Fixed Income XI Inc, CDPQ Infrastructures Asia III Inc, Ivanhoe Logistics India Inc and Caisse de depot et placement du Québec (CDPQ). To incentivise investment by SWFs of foreign governments in the priority sectors Finance Minister Nirmala Sitharaman, in her Budget 2021 speech had proposed to grant 100% tax exemption to their interest, dividend, and capital gains income in respect of investment made in infrastructure and other notified sectors before 31 March 2024 and with a minimum lock-in period of three years. Image Source Also read: FDIs in India rise 19% to $59.64 billion in FY21: Govt data Also read: Govt offers tax relief to four more foreign funds to push infra investments