The Central Government, in exercise of the powers conferred by Section 11(5) read with Note 5(d)(ii) of Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025 (30 of 2025), has issued Notification No. 70/2026-CBDT vide S.O. 2768(E), dated June 01, 2026, specifying an additional category of ‘business’ for the purposes of Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025. The notification has been issued by the Central Board of Direct Taxes (CBDT), Ministry of Finance, Department of Revenue, New Delhi, and comes into force from the date of its publication in the Official Gazette.
Background — Section 11(5) and Schedule V, Note 5(d) of the Income-tax Act, 2025:
Section 11(5) of the Income-tax Act, 2025 governs the forms and modes in which a charitable or religious trust or institution must invest or deposit its funds in order to maintain tax exemption under the Act. Schedule V [Table: Sl. No. 7] read with Note 5(d) provides the framework for investment in shares, debentures, or other instruments of companies engaged in ‘specified businesses’. Note 5(d)(i) already specifies certain businesses; Note 5(d)(ii) empowers the Central Government to notify additional businesses (other than those in Note 5(d)(i)) as ‘specified businesses’ for this purpose.
What Has Been Notified:
Under this notification, the Central Government has specified businesses engaged in infrastructure sub-sectors mentioned in the Updated Harmonised Master List of Infrastructure Sub-sectors, as notified by the Government of India in the Ministry of Finance, Department of Economic Affairs, vide Notification No. F. No. 13/1/2025-IPP, dated 19th September, 2025, published in the Gazette of India, Extraordinary, Part I, Section 1, as ‘specified businesses’ for the purposes of Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025.
Key Highlights of the Notification:
- Additional Specification: The notification specifies businesses under Note 5(d)(ii) — i.e., businesses other than those already specified in Note 5(d)(i) of Schedule V — engaged in infrastructure sub-sectors listed in the Updated Harmonised Master List.
- Reference Master List: The Updated Harmonised Master List of Infrastructure Sub-sectors is as notified by the Ministry of Finance, Department of Economic Affairs vide F. No. 13/1/2025-IPP, dated 19th September, 2025, in the Official Gazette (Extraordinary, Part I, Section 1).
- Purpose: The specified businesses are now eligible for investment by charitable/religious trusts and institutions under Section 11(5) read with Schedule V [Table: Sl. No. 7], enabling them to invest their corpus and accumulated funds in such businesses while maintaining compliance with the investment norms prescribed under the Income-tax Act, 2025.
- Effective Date: The notification comes into force from the date of its publication in the Official Gazette, i.e., 1st June, 2026.
Significance of the Notification:
This notification is significant for charitable and religious trusts and institutions registered under the Income-tax Act, 2025. It broadens the universe of permissible investments under Section 11(5) by recognising businesses engaged in infrastructure sub-sectors under the Updated Harmonised Master List — which covers sectors such as roads, ports, airports, urban infrastructure, energy, telecom, and allied sub-sectors — as ‘specified businesses’. This enables such trusts and institutions to invest surplus funds in a wider range of infrastructure-focused entities while remaining compliant with the prescribed investment modes under the Act.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/06/CBDT-N.No_.-70-2026.pdf
