Air India's Assets Transfer To Special Purpose Vehicle, Tax Exempted

Centre has given tax exemption on transfer of assets by the national carrier to its special purpose vehicle Air India Assets Holding Limited.

In a move which could facilitate strategic disinvestment of Air India, the Centre has given tax exemption on transfer of assets by the national carrier to the special purpose vehicle (SPV) Air India Assets Holding Limited. The Central Board of Direct Taxes (CBDT) in a notification said that there won't be any tax deductible at source (TDS) cut in case of transfer of goods by the national carrier to the SPV. It further added that no TDS would be deducted in case of transfer of immovable property by Air India to the SPV. The notification further said that Air India will not be considered as "seller" for the purpose of TCS deduction related to transfer of goods to Air India Assets Holding Limited. As part of initiating the process of Air India sale, the government had set up the SPV in 2019 for transfer of debt and non-core assets of the Air India group.