Income tax vide Notification no. 66/2019 Central Board of Direct Taxes(CBDT) omitted Rule 2F(5) of Income tax Rules, 1962.
Section 10(47) of Income tax Act, 1961 exempts income of an Infrastructure debt fund, set-up in accordance with rules prescribed in Rule 2F of Income tax Rules, 1962.
Rule 2F(5) in which it says “ an investor in the bond issued by Infrastructure debt fund being a non-resident, the original or initial maturity of bond, at time of first investment by such non-resident investor, shall not be less than a period of five years.” is omitted.
By omitting such provisions Government of India want to encourage Non-residents to invest in infrastructure debt funds even for a short term investment.