More Stories

Informist, Saturday, Feb. 1, 2025

--BUDGET:Propose benefits to ship leasing, treasury, insurance offices in IFSC 

--BUDGET: Cut-off date for commencement of ops in IFSC extended by 5 yrs 

NEW DELHI – The government has extended the cut-off date for global companies to commence operations in the International Financial Services Centres in order to claim benefits by five years to Mar. 31, 2030, Finance Minister Nirmala Sitharaman said Saturday, while presenting the Budget for 2025-26 (Apr-Mar).

The finance minister also proposed specific benefits to ship-leasing units, insurance offices and treasury centres of global companies which are set up in IFSC, in order to attract and promote additional activities. "It is proposed that the sunset dates related to IFSC units for exemptions, deductions and relocation in various sections shall be extended to Mar. 30, 2030," she said. 

Under the multiple incentives, the government proposed to exempt the proceeds received from a life insurance policy issued by IFSC insurance intermediary office without the condition on the maximum premium amount.

The government also proposed to extend section 10(4H) of the Income Tax Act, 1961, which provides exemption on capital gains for non-residents or a unit of IFSC on the transfer of equity shares of a ship-leasing company.

Further, it proposed to extend section 10(34B) of the Income Tax Act, which exempts dividend paid by a ship leasing company in IFSC to a unit of IFSC engaged in ship leasing. Any loan between two group entities, where one of the group entities is set up in IFSC for undertaking treasury activities or treasury services, shall be excluded from dividend.

The government also proposed to provide a simplified safe harbour regime for investment funds managed by fund manager based in IFSC. "It is further proposed to extend the relaxation of conditions for IFSC units till Mar. 30, 2030," Budget said.

The Budget proposed to provide exemption on any income accruing or arising to or received by a non-resident as a result of transfer of non-deliverable forward contracts entered into with any foreign portfolio investor, being a unit in an IFSC. 

The government proposed that the transfer of a share or unit or interest held by a shareholder in an original fund in consideration for the share or unit or interest in a resultant fund in a relocation, shall not be regarded as transfer for the purpose of calculating capital gains. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.