Finance Minister Nirmala Sitharaman announced several incentives for the International Financial Services Centre (IFSC) in the 2024 budget to enhance its competitiveness and attractiveness.
Retail schemes and Exchange Traded Funds (ETFs) in IFSC will enjoy tax exemptions similar to those available to specified funds. Certain income of the Core Settlement Guarantee Fund set up in IFSC will also be exempt from taxes.
Section 94B of the Income Tax Act will not apply to certain finance companies located in IFSC. Furthermore, venture capital funds (VCFs) in IFSC extending loans or other amounts to assessees will not be required to explain the source of funds.
Additionally, a surcharge will not apply to income tax payable on income from securities by specified funds, providing further tax relief and encouraging investment in IFSC.
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