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
No comments:
Post a Comment