CBDT Notifies Infrastructure Sub-Sectors as Eligible Businesses Under Schedule V of Income-tax Act, 2025
Overview
The Central Board of Direct Taxes (CBDT) has issued Notification No. 70/2026 dated 1st June, 2026, formally recognising businesses operating within infrastructure sub-sectors as eligible businesses under the Income-tax Act, 2025. This notification carries significant implications for assessees engaged in infrastructure-related activities, as it expands the scope of recognised eligible businesses under the statute and brings much-needed regulatory clarity to the sector.
Statutory Authority and Legal Basis
The notification has been issued by the Central Government in exercise of powers vested under 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).
It is important to note that this notification specifically covers businesses other than those already falling within the ambit of Note 5(d)(i) of Schedule V. In essence, the two clauses — Note 5(d)(i) and Note 5(d)(ii) — operate in tandem to provide comprehensive coverage of infrastructure businesses under the Act, with the present notification addressing the residual category not captured by the former clause.
Reference to the Updated Harmonised Master List
The cornerstone of this notification is its reference to the Updated Harmonised Master List of Infrastructure Sub-Sectors, which was issued by the Department of Economic Affairs, Ministry of Finance, vide notification bearing reference F.No.13/1/2025-IPP, dated 19th September, 2025. This master list was published in the Gazette of India, Extraordinary, Part I, Section 1.
The Updated Harmonised Master List serves as the definitive catalogue of sub-sectors that qualify as infrastructure for the purposes of this notification. Assessees whose business activities align with the sub-sectors enumerated in this master list stand to benefit from the recognition extended under Schedule V [Table: Sl. No. 7] of the Income-tax Act, 2025.
Important: Assessees must cross-verify their specific line of business against the sub-sectors listed in the Updated Harmonised Master List issued by the Department of Economic Affairs dated 19th September, 2025, to ascertain eligibility under this notification.