Gandhinagar

Union Budget presented today by Finance Minister Shri Arun Jaitley has given big boost to India’s First International Financial Services Centre (IFSC) at GIFT City in Gujarat said Mr. Ajay Pandey, MD and Group CEO of GIFT City.

He said, “we welcome the Union Budget’s important regulations for development of International Financial Services Centre (IFSC) in India. These incentives could not have come at a more opportune time than this as India stands out as the only bright spot in the world with a GDP growth rate of 7% plus even as the rest of the world is facing varying levels of slowdown.

Also, recent announcement of IT/ITeS policy and waiver of stamp duty on share broking transactions in GIFT City from Government of Gujarat, today’s announcement for IFSC in the Union Budget will further boost the development of India’s first IFSC at GIFT City.”

He further said, “various announcements regarding IFSC in today’s Union Budget are under review at our end, however following are few of the key highlights”:

Minimum Alternate Tax (MAT) reduced from 18.5 % to 9 % in IFSC:

With a view to provide a competitive tax regime to International Financial Services Centre, it is proposed to provide that in case of a company, being a unit located in International Financial Services Centre and deriving its income solely in convertible foreign exchange, the Minimum Alternate Tax shall be chargeable at the rate of 9 % compared to earlier rate of 18.5 %.

Security Transaction Tax (STT) waived off:

It is proposed that Security Transaction Tax (STT) be waived off for taxable securities transactions entered into by any person on a recognized stock exchange located in International Financial Services Centre

Commodity Transaction Tax (STT) waived off:

It is proposed to that Commodity Transaction Tax (CTT) be waived off for taxable Commodities transactions entered into by any person on a recognized stock exchange located in International Financial Services Centre

Dividend Distribution Tax (DDT) abolished:

It is proposed to provide that no tax on distributed profits shall be chargeable in respect of the total income of a company being a unit located in International Financial Services Centre.

Long Term Capital Gain (LTCG) waived off:

With a view to incentivize the growth of International Financial Services Centres into a world class financial services hub, it is proposed to provide for exemption from tax on capital gains to the income arising from transaction undertaken in foreign currency on a recognized stock exchange located in an International Financial Services Centre.

– DeshGujarat