Tax Deduction Exemption for IFSC Units

Last updated: 20 March 2024

Save Share

Quick Summary

The Central Board of Direct Taxes has issued a notification granting tax deduction exemptions for payments made to Units of International Financial Services Centres (IFSC). This means that certain payments to IFSC units will not be subject to tax deduction under specified provisions of the Income-tax Act, 1961. The notification details the specific payments and payee units eligible for this exemption.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 7th March, 2024
INCOME TAX

S.O. 1135(E).—In exercise of the powers conferred by sub-section (1F) of section 197A read with subsection (1A) and sub-section (2) of section 80LA of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred as the Income-tax Act), the Central Government hereby notifies that no deduction of tax shall be made under the provisions of the Income-tax Act as specified in column (4) of the Table below in respect of the payments, as specified in column (3) of the said Table, made by any ‘payer’ to a person being a Unit of International Financial Services Centre, (hereinafter referred as ‘payee’), as specified in column (2) of the said Table:-

For full notification please refer to the attachment

FAQ :

The notification grants tax deduction exemptions for payments made to Units of International Financial Services Centres (IFSC).

These tax exemptions are governed by the Income-tax Act, 1961.

Units of International Financial Services Centres (IFSC) are eligible to receive these exempt payments.

A 'payer' is the entity making the payment, and a 'payee' is a Unit of an International Financial Services Centre receiving the payment.

The full details of the tax deduction exemptions are available in the attached notification.

Notification No : 28/2024
Source : https://www.pdicai.org/Docs/Notification-No-28-2024_1232024163929970.pdf

Attached File : 322600_11271_tax_deduction_exemption_for_ifsc_units.pdf

downloaded 10 times

523 Views Comment Share Income Tax Report

Notification 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.

Comments