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68 Days ago

Business Wire India
We are pleased to share with you that the Union Budget has given several major tax incentives to International Financial Services Centre (IFSC) and this will give a huge impetus to India’s first IFSC which has become operational at Gujarat International Finance Tec-City (GIFT). These incentives will go a long way in making GIFT IFSC a major global financial hub on the lines of London, Dubai, Hong Kong & Singapore.
 
Following are few of the key highlights of the Budget announcement for IFSC:
 

  • Minimum Alternate Tax (MAT) reduced from 18.5 % to 9 % in IFSC:
 
With a view to provide a competitive tax regime to International Financial Services Centre, it is proposed to provide that in case of a company, being a unit located in International Financial Services Centre and deriving its income solely in convertible foreign exchange, the Minimum Alternate Tax shall be chargeable at the rate of 9 % compared to earlier rate of 18.5 %.
 
  • Security Transaction Tax (STT) waived off:
 
It is proposed that Security Transaction Tax (STT) be waived off for taxable securities transactions entered into by any person on a recognized stock exchange located in International Financial Services Centre.
 
  • Commodity Transaction Tax (STT) waived off:
 
It is proposed to that Commodity Transaction Tax (CTT) be waived off for taxable Commodities transactions entered into by any person on a recognized stock exchange located in International Financial Services Centre
 
  • Dividend Distribution Tax (DDT) abolished:
 
It is proposed to provide that no tax on distributed profits shall be chargeable in respect of the total income of a company being a unit located in International Financial Services Centre.
 
  • Long Term Capital Gain (LTCG) waived off:
 
With a view to incentivize the growth of International Financial Services Centres into a world class financial services hub, it is proposed to provide for exemption from tax on capital gains to the income arising from transaction undertaken in foreign currency on a recognized stock exchange located in an International Financial Services Centre
 
We are sure that these incentives will go a long way in making GIFT IFSC a major global financial hub on the lines of London, Dubai, Hong Kong & Singapore.

Photo Caption: GIFT City

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