Nadda Visits NIPER Mohali, Reviews Biopharma Research and Innovation (See 'Corp Brief') BIS publishes six New Standards for Priority Assistive Products (See 'Corp Brief') Atmanirbhar Panchayat Program to focus on strengthening financial self-reliance of Panchayats (See 'Corp Brief') Bharat Khera Assumes Charge as Secretary, Ministry of MSME (See 'Corp Brief') Pilibhit in UP to get India's first integrated Basmati, organic training-cum-demo farm (See 'Corp Brief') FTA integrates Ayurveda and yoga into modern trade frameworks (See 'Corp Brief') India Grounds $6.1 Billion Investments in FY26, Expects 31,000 Jobs (See 'Corp Brief') Companies Act - Continuation of Look Out Circular invalid where no FIR is registered against person, all prior travel permissions are complied with & no material exists to show likelihood of him absconding: HC (See 'Legal Desk') Op Sindoor demonstrates transition from diplomatic statements to concrete action on terror (See 'Corp Brief') NARCL contributes to improving recovery outcomes & unlocking value for lenders (See 'Corp Brief') IPR - Issues relating to validity of trademark registrations, alleged misrepresentation, and authenticity of documents would be examined at trial, if no party is able to establish substantial goodwill in their respective marks: HC (See 'Legal Desk') DRDO & Indian Navy conduct maiden successful Salvo launch of NASM-SR missiles (See 'Corp Brief') Sacred relics of Lord Buddha arrive in Leh, witnesses spiritual gathering (See 'Corp Brief') PMLA - Separate properties of another company or LLP cannot be attached merely because of shareholding linkage, absent demonstrated money trail to such properties: SAFEMA (See 'Legal Desk') Electrification of buses & trucks is essential for achieving India's decarbonisation targets (See 'Corp Brief') Health-Seeking Behaviour Strengthens as Proportion of Population Reported Ailing in 2025 Nearly Doubles (See 'Corp Brief') IBC - Minimum default threshold u/s 4 is met in case involving operational debt denominated in foreign currency, if foreign currency amount is converted into Indian Rupees with reference to exchange rate prevailing on date of invoice: NCLT (See 'Legal Desk') Railway Minister to Flag Off Extended Srinagar-Jammu Vande Bharat (See 'Corp Brief') Competition Act - Tender conditions & eligibility criteria are primarily within procurer's domain and, absent evidence that such clauses restricts competition or cause exclusionary harm, no intervention is warranted: CCI (See 'Legal Desk') Secretary, DFS Lauds MUDRA Schemes of Financial Inclusion with Public Sector Banks (See 'Corp Brief') Trade Mark - Defendants' conduct of running a coordinated fraudulent recruitment scheme, impersonating the plaintiffs & extracting money from each candidate, is deliberate exploitation of plaintiffs' goodwill & causes reputational harm: HC (See 'Legal Desk') CCI approves Mizuho Securities to acquire certain equity of Avendus Capital (See 'Corp Brief') SAFEMA - Certain transaction falls within ambit of benami transaction where appellants failed to produce supporting material, despite opportunity, to establish legitimate source of funds either in hands of lender or alleged contributors: SAFEMA TRIBUNAL (See 'Legal Desk') CCI approves merger of A1 Agri Global, B.N. Agritech & Salasar Balaji Overseas (See 'Corp Brief') IBC - If corporate debtor is solvent & functioning company, then insolvency process invoked only to secure payment of individual dues by initiation of CIRP, amounts to misuse of IBC as recovery mechanism: SC (See 'Legal Desk') CCI approves acquisition by MAIF in Maple IM, Maple PM & Maple Trust (See 'Corp Brief') PMLA - Attachment of a residential property upheld where Act itself permits attachment not only of property directly acquired from proceeds of crime, but also of untainted property representing equivalent value where actual proceeds of crime are unavailable or untraceable: HC (See 'Legal Desk') World IP day - Govt announces 3-year fee waiver for sports-related IP registrations (See 'Corp Brief') IBC - If statutory authority, during subsistence of moratorium u/s 14, directs bank to place lien on bank accounts of Corporate Debtor, and bank acts on same, it would amount to execution against Corporate Debtor and is barred by Sec 14: NCLT (See 'Legal Desk') Reining in Misuse of IBC for Recovery (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.