What is the exemption that Income Tax has granted to pension funds?
Answer
Answer
CBDT granted tax exemption to 4 pension funds on infrastructure investment related earnings in India to boost long term investment in infrastructure. This tax break will be valid on investments made up March 2024.
CBDT clarified that all such eligible tax-free investments will have a mandatory lock-in of 3 years. Investing pension funds get full tax exemption on income earned as interest, dividends and long-term capital gains.