9911796707
TMI BlogTAX INCENTIVES - Incentives to International Financial Services Centre (IFSC):X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of business carried on from an IFSC. To further promote such development and bring these IFSC at par with similar IFSC in other countries, following additional benefits are proposed: A) Under the existing provisions of the section 47 of the Act, any transfer of a capital asset, being bonds or Global Depository Receipts or rupee denominated bond of an Indian company or derivative, made by a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years. [Clause 17] B) With a view to facilitate external borrowing by the units located in IFSC, it is proposed to amend the section 10 of the Act so as to provide that any income by way of interest payable to a non-resident by a unit located in IFSC in respect of monies borrowed by it on or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es operating in IFSC, it is proposed to amend the provision of the said section to provide that any dividend paid out of accumulated income derived from operations in IFSC, after 1st April 2017 shall also not be liable for tax on distributed profits. This amendment will take effect from 1st September, 2019. [Clause 35] D) The existing provisions of the section 115R of the Act, provide that any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt equal to one hundred per cent of income for the first five consecutive assessment years and fifty per cent of income for the next five consecutive assessment years, to units of an IFSC. With a view to further incentivize operation of units in IFSC, it is proposed to amend the said section so as to provide that the deduction shall be increased to one hundred per cent for any ten consecutive yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 115A prohibits any deduction under chapter VIA which includes section 80LA. In order to ensure that units located in IFSC claim full deduction, it is proposed to amend section 115A of the Act so as to provide that the conditions contained in sub-section (4) of section 115A shall not apply to a unit of an IFSC for under section 80LA is allowed. This amendment will take effect from the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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