Income-tax Act, 2025

Deductions for income of Offshore Banking Units and Units of International Financial Services Centre - Section 147

Deductions for income of Offshore Banking Units and Units of International Financial Services Centre.

147. (1) Where the following assessee has any income of the nature referred to in sub-section (3), there shall be allowed a deduction equal to 100% of such income:

(a) a scheduled bank, or a bank incorporated under the laws of a country outside India, and having an Offshore Banking Unit in a Special Economic Zone; or

(b) a unit of an International Financial Services Centre.

13[(2) Irrespective of anything contained in section 80LA of the Income-tax Act, 1961 (43 of 1961), the deduction shall be allowed,

(a) for an entity mentioned in sub-section (1)(a),

(i) for twenty consecutive tax years beginning from the relevant tax year; and

(ii) in a case, where the tenth year, out of the period of ten consecutive years of deduction allowed under section 80LA(1) of the said Act has ended on the 31st March, 2025, for further ten consecutive years from the tax year beginning on the 1st April, 2026; and

(b) in the case of an entity mentioned in sub-section (1)(b), for twenty consecutive tax years out of twenty-five years beginning from the relevant tax year, at the option of an assessee.]

(3) The income referred to in sub-section (1) shall be the income from

(a) an Offshore Banking Unit located in a Special Economic Zone; or

(b) the business activities referred to in section 6(1) of the Banking Regulation Act, 1949 (10 of 1949), with undertakings in a Special Economic Zone or entities that develop, develop and operate, or develop, operate and maintain Special Economic Zone; or

(c) the approved business activities of any Unit of an International Financial Services Centre set up in a Special Economic Zone; or

(d) transfer of an asset being, an aircraft or a ship, leased by a unit referred to in clause (c) if such unit commenced its business operations by 31st March, .... To read the full section download the app from Google Play store