BSNL deploys One Lakh Indigenous 4G Sites; Network 5G-Ready: Scindia (See 'Corp Brief') ECI organises EVM/VVPAT Awareness Campaign in Poll-bound States (See 'Corp Brief') Trade Marks - non-use of a mark filed on proposed-to-be-used basis is irrelevant for assessing registrability of the mark: HC (See 'Legal Desk') Medicinal Plants sector to drive Viksit Bharat 2047: MoS (See 'Corp Brief') IBC/RTI - appellant cannot seek disclosure of internal notings & replies under RTI Act when same issue has already been disposed of earlier: IBBI (See 'Legal Desk') India designated Country of the Year at BIOFACH 2026, Germany (See 'Corp Brief') Delhi-NCR to be strengthened with expansion of Continuous Ambient Air Quality Monitoring Stations (See 'Corp Brief') A&C - Applications for extending arbitral tribunal's mandate u/s 29A(4) must be filed exclusively before principal civil court of original jurisdiction: SC (See 'Legal Desk') RBI rolls out measures to strengthen Cooperative Banks' Financial Health (See 'Corp Brief') A&C - Arbitral proceedings are set to commence on date of receipt of notice invoking arbitration clause: SC (See 'Legal Desk') IWAI facilitates ODC Movement via Inland Waterways to Boost Assam's Semiconductor Ecosystem (See 'Corp Brief') A&C - Under pre-2015 amendment regime, once party consents to court order appointing arbitrator, they cannot subsequently challenge existence or validity of arbitration clause before arbitral tribunal: SC (See 'Legal Desk') Prasada inaugurates STQC Lab Automation Portal 'SATYA' (See 'Corp Brief') Indian Delegation visits Vietnam to Open New Opportunities in Silk, Sericulture & Handloom (See 'Corp Brief') Paswan releases Plastic Industry Status Report 2025 (See 'Corp Brief') Trade Mark - prior user rights override subsequent registration, particularly where adoption of deceptively similar subsequent trade mark, is not bona fide & is aimed at riding on existing goodwill of existing trade mark: HC (See 'Legal Desk') CCI registered 54 cases of anti-competitive practices in 2025 (See 'Corp Brief') National Institute of Ayurveda reaffirms role as global centre for education & patient care (See 'Corp Brief') Electronic Interlocking rolled out at 34 Railway Stations of N-E (See 'Corp Brief') PMLA - Objectives of enacting PMLA 2002, was attachment and confiscation of proceeds of crime which is quintessence so as to combat evil of money-laundering: SAFEMA (See 'Legal Desk') Khelo India Multipurpose Hall at SAI Sambhajinagar is addition to Olympic readiness: MoS (See 'Corp Brief') PM addresses community programme in Kuala Lumpur (See 'Corp Brief') A & C - mandate of arbitrators appointed unilaterally by one party, merits being terminated, where the other party explicitly refuses to waive applicability of Section 12(5) of the Act: HC (See 'Legal Desk') India-US Trade Agreement: Major boost for Textile Industry (See 'Corp Brief') IBC - In unavailability of adequate document/information and considering effect of limitation period, assigning of 'zero' value to trade receivables, without any due justification, is not appropriate: IBBI (See 'Legal Desk') India has signed MoUs with 23 countries for cooperation on Digital Public Infrastructure (See 'Corp Brief') A&C - Once arbitral tribunal has adopted plausible & reasonable interpretation of facts and contractual terms, courts cannot re-appreciate evidence or sit in appeal over award: SC (See 'Legal Desk') Railways inspects All Bridges Twice a Year (See 'Corp Brief') A&C - Permitting a civil suit to challenge an award confirmed by the Supreme Court would undermine the arbitral framework and public confidence in arbitration: HC (See 'Legal Desk') Over 1.25 lakh Livestock Farmers joined Virtual Awareness Program: MoS (See 'Corp Brief') A & C - Referral court not required to conduct detailed or contested inquiry & must limit itself to ascertaining whether underlying contract contains an arbitration clause covering disputes between the parties: HC (See 'Legal Desk') Pariksha Pe Charcha marks First-Ever multi-location nationwide engagement (See 'Corp Brief') SEBI - If Noticee violated regulation 23(1) and 23(4) of LODR Regulations as alleged in SCN, Noticee is liable for payment of monetary penalty in terms of section 15HB of SEBI Act: SEBI (See 'Legal Desk') TRAI issues Telecommunication Services Interconnection Regulations, 2026 (See 'Corp Brief') Trade Marks - Procedural defects & inadvertent errors which are curable should not be permitted to defeat substantive rights, unless shown to be deliberate, mala fide, or prejudicial to opposite party: HC (See 'Legal Desk') The Securities Markets Code, 2025: Strengthened Enforcement, Weakened Accountability? (See 'CORP EINSICHT')

Print

Budget offers incentives for International Finances Services Centre units

Published: Feb 03, 2025

By TIOLCorplaws News Services

NEW DELHI, FEB 03, 2025: IN a move to further promote the growth of International Financial Services Centres (IFSCs) in India, the government has proposed several tax incentives and amendments aimed at enhancing the sector's attractiveness for both domestic and international businesses. The proposed changes are part of efforts to foster a world-class financial infrastructure in the country.

Extension of Sunset Dates for Tax Concessions

The government plans to extend the sunset dates for the commencement of operations in IFSC units. Tax concessions related to the relocation of funds and the start of operations in IFSC will now be extended until March 31, 2030. These amendments will take effect from April 1, 2025, ensuring long-term support for businesses operating in the IFSC.

Exemption on Life Insurance Policies from IFSC Insurance Offices

A significant change has been proposed for life insurance policies issued by IFSC Insurance offices. Currently, the exemption on life insurance proceeds is subject to premium limits-?2.5 lakh for unit-linked policies and ?5 lakh for others. The new proposal aims to exempt life insurance proceeds from IFSC Insurance offices for non-residents, without the existing premium limits, providing parity with other foreign jurisdictions. This amendment is also set to take effect from April 1, 2025.

Capital Gains and Dividend Exemption for Ship Leasing Units in IFSC

In a bid to expand the tax benefits to the ship leasing sector, the government has proposed extending the existing tax exemptions for aircraft leasing units to those engaged in ship leasing within IFSCs. Non-resident investors and IFSC units involved in ship leasing will be exempt from capital gains tax on the transfer of equity shares, as well as from dividend tax on payments made within the IFSC ship leasing business. This change will also take effect from April 1, 2025.

Rationalisation of Dividend Definition for Treasury Centres in IFSC

The government has also proposed rationalising the definition of "dividend" for corporate treasury centres in IFSCs. The revision addresses concerns about potential tax implications for loans and advances made between group entities, especially in cases where one entity operates as a global or regional corporate treasury centre. Under the proposed amendments, loans or advances between group entities-where one is a finance company or finance unit in an IFSC-will not be treated as "dividend." These changes aim to ensure smoother operations for treasury centres in India's IFSCs and are set to be effective from April 1, 2025.

These proposed changes reflect the government's continued efforts to make India's IFSCs more competitive and attractive to global financial services businesses, with the goal of positioning India as a hub for international finance.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.