Deduction to Offshore Banking Units and International Financial Services Centres (IFSC) [Section 80LA]
• Eligible assessee – The following person can claim deduction under this section:
Scheduled banks having offshore banking units in a SEZ.
A bank incorporated by or under laws outside India with offshore banking units in a SEZ.
Units of International Financial Services Centres (IFSC).
• Income Eligible for Deduction – The following incomes are eligible for deduction:
Income arising from an offshore banking unit in a SEZ;
Income arising from business referred under Section 6(1) of the Banking Regulation Act, 1949, with an undertaking located in a SEZ or related to SEZ development, operation or maintenance;
Income from any unit of the IFSC approved for setting up in SEZ; or
Income from the transfer of an asset (aircraft or ship) leased by an IFSC unit referred to above, provided the IFSC unit commenced operations on or before 31-03-2030.
• Quantum and Period of Deduction –
For Units of an IFSC: 100% deduction for 10 consecutive assessment years out of 15 years, starting from the year relevant to obtaining permission under the Banking Regulation Act, SEBI Act or the IFSC Authority Act.
For Others: 100% deduction for 10 consecutive years, starting from the year relevant to obtaining permission under the Banking Regulation Act, SEBI Act or under any other applicable law.
• Conditions to Claim Deduction – The assessee must electronically furnish the following documents with the return of income:
Chartered Accountant’s report in Form No. 10CCF certifying the correctness of the claimed deduction.
Copy of permission obtained under Section 23(1)(a) of the Banking Regulation Act, 1949, or registration under the International Financial Services Centre Authority Act, 2019.