National Advisory Board calls for integrated management for climate-resilient agriculture (See 'Corp Brief') Arbitration - Where arbitration proceedings are meant for resolving civil & contractual disputes, they cannot be invoked to resolve penal offences under the Negotiable Instruments Act: HC (See 'Legal Desk') Centre of Excellence to advance Indigenous Telecom R&D (See 'Corp Brief') 102 Route Km Wadi-Raichur Section to be upgraded with 2×25 kV Electric Traction System (See 'Corp Brief') A & C Act - Private contractual confidentiality clause cannot override statutory or legal obligation to disclose documents directed by court of law: HC (See 'Legal Desk') CERT-In conducts 10 Cyber Security Exercises on AI-Driven Cyber Threats (See 'Corp Brief') Sonowal urges 'Faster Execution', calls for 'Speed & Scale' to meet 2030 maritime targets (See 'Corp Brief') NDPS - While mere non-compliance with procedural mandates of Sec 52A of NDPS Act is not automatically fatal to prosecution, it necessitates heightened scrutiny test of remaining evidence: HC (See 'Legal Desk') India Mobile Congress 2026 - scaling without boundaries forms goal (See 'Corp Brief') MoRD and PCI India ink MoU to bolster women-led enterprises through public procurement (See 'Corp Brief') 5.56 lakh recruitments done since 2014, Including 50,485 in Southern Railway: Vaishnaw (See 'Corp Brief') Trade Mark - Interim injunction allowed where plaintiff successfully satisfies triple test by a strong prima facie case, imbalance of convenience & irreparable injury: HC (See 'Legal Desk') Corporate Mitra Scheme Awareness Webinar organized by IICA Shillong (See 'Corp Brief') Assam Exports First International Consignment of Purabi Ice Cream to Bhutan (See 'Corp Brief') IPR - If plaintiff demonstrates prior adoption, statutory registrations, commercial reputation, and prima facie deceptive similarity between rival marks used for identical goods through common trade channels, ex parte injunction may be granted: HC (See 'Legal Desk') Common Service Centres increase from 83,950 to 5,01,731 (See 'Corp Brief') RM calls for tech-driven preventive healthcare to enhance combat readiness (See 'Corp Brief') A&C - Once claim is consciously and formally withdrawn by party, arbitrator completely loses jurisdiction to adjudicate upon it: HC (See 'Legal Desk') Railways approves Rs 163 Crore Electric Traction Upgradation in South Central Railway (See 'Corp Brief') Govt promotes indigenous Potash Production and Alternative Nutrient Sources (See 'Corp Brief') IBC - Personal guarantee expressly drafted as a continuing and irrevocable guarantee does not stand discharged merely because the guarantor resigns as director of the corporate debtor: NCLAT (See 'Legal Desk') CCI approves amalgamation of Go Digit Infoworks with Go Digit General Insurance (See 'Corp Brief') CCI okays acquisition of units of Oaktree capital group by Brookfield Asset Management (See 'Corp Brief') IBC - If IRP is allowed to perform only limited functions during period when CIRP is under substantial judicial restriction, IRP is not automatically entitled to full professional fees at minimum monthly rate: NCLAT (See 'Legal Desk') Amritsar becomes second spoke airport under India's International Aviation Hub Strategy (See 'Corp Brief') RRBs post Highest-Ever Net Profit of Rs. 10,177 Crore in FY 2025-26 (See 'Corp Brief') PMLA - Retention or continued freezing of a person's property cannot be permitted solely or primarily on ground that investigation is ongoing: SAFEMA TRIBUNAL (See 'Legal Desk') NHAI Successfully defends Major Arbitration Case to Safeguard Public Funds (See 'Corp Brief') Companies Act - Coal beneficiation cannot per se be excluded from ambit of manufacturing process to justify quashing of criminal complaint at preliminary stage: HC (See 'Legal Desk') Digital India BHASHINI conducts Multilingual AI Workshop for Haryana Vidhan Sabha (See 'Corp Brief') MISC - RBI, possessing superior expertise in financial administration over cooperative authorities, has independent power to supersede board of a cooperative bank under the Banking Regulation Act - Principles of natural justice do not apply to Section 36AAA of Banking Regulation Act 1949: HC (See 'Legal Desk') Youth Unrest & CJP Agitation: Key Learnings (See CORP EINSICHT) IPR - Patent offices cannot rely on mere hypotheses or hindsight to dismiss technical advancement: HC (See 'Legal Desk') 'Corporate Mitra Scheme' Awareness Webinar Successfully Organized by IICA Shillong (See 'Corp Brief') Rajya Sabha organises Orientation Programme for newly elected Members (See 'Corp Brief') IBC - Service of insolvency petition on corporate debtor's registered email address available in MCA records constitutes valid service, if accompanied by attempts at service at registered office and publication in accordance with NCLT Rules: NCLAT (See 'Legal Desk') Coast Guard rescues 170 Persons in Flood Relief Operations across Daman, Dadra & Nagar Haveli (See 'Corp Brief') IBC - Prior or parallel proceedings under SARFAESI and before DRT do not bar Section 95 insolvency application: NCLT (See 'Legal Desk') Public Advisory: Beware of Fraudulent Air Suvidha 2.0 Websites (See 'Corp Brief') IBC - Liquidation application allowed where corporate debtor is not a going concern, has prima facie nil asset value & where requirements of Section 33 of IBC 2016 are met: NCLT (See 'Legal Desk')

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.