Incentives to International Financial Services Centre
The Finance Bill, 2025, proposes several key changes in the Income Tax Act, 1961, to continue reforms in the direct tax system through tax reliefs, removing difficulties faced by taxpayers, and rationalizing1 various provisions. Here are some of the key changes:
Incentives to International Financial Services Centre
International Financial Services Centre (IFSC) is a jurisdiction that provides financial services to
non-residents and residents, to the extent permissible under the current regulations, in any currency
except Indian Rupee. In order to promote the development of world-class financial infrastructure in
India, several tax concessions have been provided to units located in IFSC, under the Act, over the past
few years.
In order to further incentivize operations from IFSC, it is proposed to make the following
amendments:-
II. Extension of sunset dates for several tax concessions pertaining to IFSC
The sunset dates for commencement of operations of IFSC units for several tax concessions, or
relocation of funds to IFSC, in clause (d) of sub-section (2) of section 80LA, clause (4D), clause (4F),
clause (4H) of section 10 and clause (viiad) of section 47, is proposed to be extended to 31st day of
March, 2030.
2. These amendments will take effect from the 1st day of April, 2025.
[Clauses 6, 13 & 19]