Tax incentives for sovereign funds to boost public sector monetisation

Tax exemption for sovereign wealth funds and benefits for investment in infrastructure investment trusts (InvITs) are expected to help public sector entities in their asset monetisation drive. Experts see the Budget announcement positive for investments both in InvITs and the toll-operate-transfer mode (TOT). 

To incentivise investments from sovereign wealth funds in the priority sectors, Finance Minister Nirmala Sitharaman said in her speech, a 100 per cent tax exemption to their interest, dividend and capital gains income in respect of investment would be allowed. They are to be made in infrastructure and other 36 notified sectors before March 31, 2024, and