Budget extends more sops for IFSC

What is the news?

In the Union Budget 2022, the Finance Minister has announced several steps to further promote the International Financial Services Center (IFSC) in Gujarat.

What are the steps announced by the Finance Minister to promote IFSC?

Firstly, Income Tax incentives will be provided to promote various business activities such as ship leasing and financing, offshore fund management and offshore banking activities at GIFT City. 

Secondly, World–class foreign universities and institutions will be allowed in the GIFT City to offer courses in various subjects like Financial Management, FinTech, Science, Technology, Engineering and Mathematics. These universities will be free from domestic regulations except those by IFSCA.

Thirdly, an International Arbitration Center will be set up in the GIFT City for timely settlement of disputes under international jurisprudence.

Fourthly, the Government has allowed “climate finance” funds to be routed to India through IFSC.

Fifthly, the income of a non-resident from offshore derivative instruments or over-the-counter derivatives issued by an offshore banking unit at IFSC shall be exempt from tax, subject to conditions.

Source: This post is based on the article “Budget extends more sops for IFSC” published in The Hindu on 2nd Feb 2022.