Understanding Draft Rule 24: Criteria for Infrastructure Facilities

The release of the Draft Income-tax Rules, 2026 has brought forward specific guidelines regarding the classification of public facilities. Specifically, Rule 24 of these draft rules outlines the essential prerequisites that a facility must satisfy to be officially notified as an "infrastructure facility" within the ambit of Section 32(e) of the Act.

For an assessee operating in the infrastructure sector, understanding these conditions is vital for regulatory compliance and claiming potential benefits associated with the designation. The rule establishes a framework based on ownership structure, contractual agreements with government bodies, and the operational timeline of the project.

Core Eligibility Conditions

According to the text of Rule 24, a public facility does not automatically qualify as an infrastructure facility. It must strictly adhere to a set of three primary conditions. These conditions ensure that the benefits under Section 32(e) are restricted to entities that are genuinely integrated into the nation's infrastructure development framework.