The notification designates bonds issued by the Housing and Urban Development Corporation Limited (HUDCO) as 'long-term specified assets' for the purpose of Section 54EC of the Income-tax Act, 1961.
These bonds must be redeemable after five years and issued on or after April 1, 2025.
HUDCO is required to use the proceeds from these bonds exclusively for infrastructure projects that can service their debt from project revenues, without relying on state government support.
Key Changes
HUDCO bonds issued on or after April 1, 2025, and redeemable after 5 years, are now classified as ‘long-term specified assets’ under Section 54EC of the Income-tax Act, 1961.
The funds raised from these bonds must be used solely for infrastructure projects capable of independent debt servicing through their own revenue streams.
The definition of 'Infrastructure' includes all infrastructure sub-sectors as defined in notification no. 262 of the Department of Economic Affairs, Ministry of Finance, issued on October 11, 2022, including any amendments or additions.
Impact Analysis
Impact on Investors
Investment is subject to a lock-in period of five years.
Impact on Infrastructure Sector
The clarification on the definition of 'Infrastructure' provides greater certainty for project developers and investors.
Suggested Action Items
The Ministry of Finance should monitor the implementation of this notification and its impact on infrastructure investment.
Impact on HUDCO
HUDCO needs to ensure compliance with the infrastructure definition as per the Ministry of Finance notification.
Key Entities Referenced
HUDCO: Housing and Urban Development Corporation Limited, a public financial institution notified by the Central Government under section 2(72) of the Companies Act, 2013.
Income-tax Act, 1961: The principal legislation governing income tax in India. Section 54EC provides tax benefits for investments in certain specified assets.
Companies Act, 2013: Indian legislation that regulates incorporation, operation and governance of companies in India.
Ministry of Finance, Department of Economic Affairs Notification No. 262: Defines the infrastructure sub-sectors. Issued vide F.No.13/1/2017-INF dated October 11, 2022 (Updated Harmonised Master List of Infrastructure sub-sectors).
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-08042025-262339
CG-DxLx-xEG-I0D8H0x4x2x0 25-262339
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1613] नई दिल्ली, मगं लिार,अप्रलै 8, 2025/चत्रै 18, 1947
No. 1613] NEW DELHI, TUESDAY, APRIL 8, 2025/CHAITRA 18, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 7 अप्रैल, 2025
का.आ.1644(अ).—आयकर अजधजनयम, 1961 (1961 का 43) की धारा 54 ङग के स्ट्पष्टीकरण के खंड ( खक ) द्वारा प्रित्त
िजियों का प्रयोग करते हुए , केंरीय सरकार अजधसूजचत करती ह ैदक उि धारा के प्रयोिनों के जलए आिास और िहरी जिकास जनगम
जलजमटेड ( हुडको ) (कंपनी अजधजनयम, 2013 की धारा 2 (72) के तहत केंरीय सरकार द्वारा अजधसूजचत एक सािडिजनक जित्तीय
संस्ट्थान ) द्वारा पांच साल के बाि मोचन योग्य और दिनांक 01 अप्रैल, 2025 को या उसके बाि िारी दकए गए बंधपत्र, 'िीर्डकाजलक
जिजनर्िडष्ट आजस्ट्त' के रूप में होंगे।
2. हुडको ऐसे बंधपत्र से प्राप्त राजि का उपयोग केिल उन बुजनयािी अिसंरचना पररयोिनाओं के जलए करेगा िो ऋण अिायगी के जलए
राज्य सरकारों पर जनभडर हुए जबना पररयोिना रािस्ट्ि से ऋण अिायगी कर सकती ह ैं।
स्ट्पष्टीकरण : इस अजधसूचना के प्रयोिनाथड ,
(क) ' अिसंरचना ' में सभी अिसंरचना उप - क्षेत्र िाजमल ह,ैं िैसा दक जित्त मंत्रालय के आर्थकड कायड जिभाग की अजधसूचना
संख्या 262 , जिसे फा.सं. 13 / 1 / 2017 - आईएनएफ दिनांक 11 अक्टूबर, 2022 (अिसंरचना उप - क्षेत्रों की अद्यतन सुसंगत मुख्य
सूची), द्वारा पररभाजित दकया गया ह ैऔर इसमें उनमें दकए गए कोई भी संिोधन या पररिधडन िाजमल होंग;े
(ख) 'अिसंरचना पररयोिना' से तात्पयड अिसंरचना क्षेत्र में कोई पररयोिना से ह ै।
[अजधसूचना सं. 31/2025/फा. सं. 225/06/2024/ITA-II]
कास्त्रो ियप्रकाि टी., अिर सजचि
2413 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 7th April, 2025
S.O. 1644(E).—In exercise of the powers conferred by clause (ba) of Explanation to section 54EC of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that bonds redeemable after five years
and issued on or after 01st day of April, 2025, by the Housing and Urban Development Corporation Limited
(HUDCO) (a public financial institution notified by the Central Government under section 2(72) of the Companies
Act, 2013), as ‘long-term specified asset’ for the purposes of the said section.
2. HUDCO shall utilise the proceeds from such bonds only for those infrastructure projects which can service the
debt out of the project revenues without being dependent on the State Governments for the service of debts.
Explanation: For the purpose of this notification,
(a) ‘Infrastructure’ includes all infrastructure sub-sectors as defined vide notification no. 262 of the Department of
Economic Affairs, Ministry of Finance issued by F.No.13/1/2017-INF dated October 11, 2022 (Updated Harmonised
Master List of Infrastructure sub-sectors) and shall include any amendments or additions made thereof;
(b) ‘Infrastructure project’ means any project in Infrastructure sector.
[Notification No. 31/2025/F. No. 225/06/2024/ITA-II
CASTRO JAYAPRAKASH T., Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.