Quick Summary
In a significant move aimed at bolstering Indias International Financial Services Centre (IFSC), the Central Board of Direct Taxes (CBDT) issued Notification No. 28/2024 on March 7, 2024. This notification brings forth a crucial exemption from tax deductions under various sections of the Income-tax Act, 1961 (the IT Act) for units operating within the IFSC. The notification highlights that units within the IFSC will be exempt from tax deductions for a variety of income types, including intere
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FAQ :
The CBDT has announced an exemption from tax deductions (TDS) for units operating within India's International Financial Services Centre (IFSC) on various types of payments.
The exemption is effective from April 1, 2024.
The exemption covers payments such as interest, professional fees, dividends, and commissions made to qualifying IFSC units.
Any payer can make payments to a qualifying IFSC unit that are exempt from TDS.
Yes, IFSC units must adhere to specified criteria and provide necessary declarations to avail themselves of these tax benefits. Compliance with regulatory standards and reporting is essential.
The government aims to bolster India's IFSC, attract foreign investment, facilitate cross-border transactions, stimulate economic growth, and position India as a preferred global financial hub.
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