Budget 2022: Tax Incentives to International Financial Services Centre (IFSC)

Last updated: 01 February 2022

Save Share

Quick Summary

The government has introduced new tax incentives for operations within International Financial Services Centres (IFSC) as part of Budget 2022. These measures aim to further enhance the IFSC's role as a global financial hub. Key proposals include extending tax exemptions to non-residents for income from offshore derivatives and ship leasing, as well as new exemptions for portfolio management services and specified funds regulated by the IFSC Authority.

1. Over the past few years several tax concessions have been provided to units located in International Financial Services Centre (IFSC) under the Act to make it a global hub of financial services sector. 2. In order to further incentivise operations from IFSC, it is proposed to provide the following additional incentives: (i) It is proposed to amend clause (4E) of section 10 of the Act to extend the exemption under the said clause to the income accrued or arisen to or received by a non-re

Daily Limit Reached

You have reached your daily limit of 2 Free News

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited News Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

The main goal is to further incentivise operations within the International Financial Services Centre (IFSC) and make it a global hub for financial services.

Income accrued or arisen to a non-resident from the transfer of offshore derivative instruments or over-the-counter derivatives with an IFSC Offshore Banking Unit will be exempt. Income from royalty or interest on leased ships paid by an IFSC unit will also be exempt if operations commenced by March 31, 2024.

Yes, a new exemption is proposed for income received by a non-resident from portfolios of securities, financial products, or funds managed by a portfolio manager on their behalf through an IFSC Offshore Banking Unit, provided the income accrues outside India.

Specified funds will now include Category I or Category II Alternative Investment Funds regulated under the International Financial Services Centres Authority Act, 2019.

These amendments will take effect from 1st April 2023, applying to the assessment year 2023-24 and subsequent assessment years.

1608 Views Comment Share Union Budget & Policy Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

View News

Comments :