Centre proposes tax incentives for foreign funds shifting to GIFT City


New Delhi, Sep 19 (IANS): In a bid to attract off-shore funds to set up their base in India, the Centre has proposed tax incentives or foreign funds who decide to shift their base to International Financial Services Centre (IFSC) at the Gujarat International Finance Tec-City (GIFT City).

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 tabled in the Parliament proposes amendments to the Income Tax Act and as per the proposed amendments profits and business income earned by such funds based in GIFT City will be exempted from tax.

The Bill proposes amendments to the Income-tax Act, 1961 which, inter alia, include providing of tax incentive for Category-III Alternative Investment Funds located in the IFSC to encourage relocation of foreign funds.

The proposed relaxations are in line with the rules in several other countries including Singapore, according to experts.

In another major relief for foreign portfolio investors, the bill also proposes to cap the surcharge on dividend income from FPIs with a trust structure at 15 per cent.

Currently, FPIs that operate as trusts have to pay a surcharge as high as 37 per cent if their dividend income is over Rs 5 crore and 25 per cent in case of a dividend income of Rs 2 crore and Rs 5 crore, following measures in the 2019-20 budget.

 

  

Top Stories


Leave a Comment

Title: Centre proposes tax incentives for foreign funds shifting to GIFT City



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.