New Tax Benefits for Infrastructure Busniesses
New Tax Benefits for Infrastructure Businesses
This notification expands the scope of businesses that can qualify for the tax benefit available under Schedule V, Table Serial No. 7 of the Income-tax Act, 2025.
What does the notification say?
The Central Government has specified that:
- Any business engaged in an infrastructure sub-sector included in the Updated Harmonised Master List of Infrastructure Sub-sectors issued by the Department of Economic Affairs will be treated as a specified business for the purposes of Schedule V, Table Serial No. 7.
- However, businesses already covered under Note 5(d)(i) are excluded from this notification because they are dealt with separately.
Why is this important?
Under the Income-tax Act, certain tax incentives, deductions, or preferential treatment are available only to “specified businesses.”
This notification officially recognizes businesses operating in notified infrastructure sectors as eligible for the benefit available under Schedule V, subject to fulfillment of other conditions prescribed under the Act.
Which sectors may be covered?
The notification refers to the Updated Harmonised Master List of Infrastructure Sub-sectors (2025), which generally includes sectors such as:
- Transport (roads, highways, ports, airports, railways)
- Energy (power generation, transmission, distribution)
- Water and sanitation
- Telecommunications
- Social infrastructure
- Logistics and industrial infrastructure
- Renewable energy projects
The exact coverage depends on the entries contained in the Master List issued by the Department of Economic Affairs.
Effective date
The notification becomes operative from the date it is published in the Official Gazette. Benefits under Schedule V, Serial No. 7 can therefore be claimed only from that date onward, subject to compliance with the provisions of the Act.
In simple words
If a company is carrying on a business that falls within one of the infrastructure sub-sectors recognized in the Government’s Harmonised Master List, that business will now be treated as a specified infrastructure business for the purposes of Schedule V of the Income-tax Act, 2025, making it eligible for the related tax provisions and incentives available under that Schedule.
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