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GIFT SEZ

Area Distribution: 216 acres of area is demarcated as Multi-Service SEZ area in GIFT City.
All the transactions should be in foreign currency
All imports are exempt from payment of all types of customs duties (BCD, SWS, IGST , CESS , etc.)
Export on payment of IGST-Have the option to pay applicable IGST and later claim refund of the same

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GIFT IFSC

Applicable laws- SEZ Act, IFSC Regulations, Income Tax Act, GST Act, Customs Act, Companies Act.
Income tax Benefits-Various benefits and relaxations available
Exemption from STT/CTT for transactions carried out on IFSC exchanges.
Stamp Duty not chargeable for transactions in RSE and depositories established in IFSC.
Various relaxations available in ROC Compliances

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IFSC

Such centre deal with the flow of finance, financial product sand services across the borders

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IFSC

In India, an IFSC is approved and regulated by the Government of India under SEZ Act 2005.
Government of India has approved GIFT City as a Multi Services Special Economic Zone ('GIFT SEZ’) and has also notified this zone as India's IFSC.
The launch of the IFSC at GIFT City is the first step towards bringing financial services transactions relatable to India
IFSC unit is treated as a non-resident under extant Foreign Exchange Management regulations (FEMA).

IFSC in India (Link Ind AS)

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INDIA’S FIRST�AUTOMATED WASTE�MANAGEMENT

-Fully automated plant and collection network.

-Waste collection via chutes, bins and pipeline network.

-Creates a cleaner, more attractive city.

-Reduced noise and emissions from fewer transport needs.

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GIFT CITY�COMMAND AND�CONTROL CENTRE

- Proactive monitoring and management of utility infrastructure.

- Real-time incident tracking for rapid response

- Notification system for ground force ensuring higher uptime of public utilities.

- 24/7 surveillance via CCTV backed up by analytics.

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INDIA’S FIRST�DISTRICT COOLING

No outdoor AC units enables better aesthetics.

Eliminates cooling towers and HVAC space requirements.

Lower carbon footprint and reduced heat island effect.

Lower O&M costs, more economical for end users.

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THE NATION’S FIRST�UTILITY TUNNEL

Enables a "digging-free city" for ease of future maintenance.

Designed and installed utility systems including power, water, sewage, waste, etc.

Provides uninterrupted services across the city.

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POWER�INFRASTRUCTURE

GIFT Power Company licensed to distribute power.

Dual 66/33KV receiving stations with redundant power sources.

Centralized backup power system in case of grid failure.

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Benefits & Incentives For Units Located�

There Are Two Areas In Which Government Has Made Path Breaking Initiatives To Position GIFT CITY As The Future Of Commercial Activities In The World.�

1. The Regulatory Reforms With Multiple Regulatory Interfaces.� 2. The Incentivized And Simplified Tax Regime & Exemptions.

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Benefits & Incentives For Units Located

Direct & Indirect Tax Incentives

Exemptions under Companies Act

State Subsidies as per IT & ITeS Policy

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Direct & Indirect Tax Incentives

1. Tax Holiday for units in IFSC

IFSC Units can avail 100% deduction from its Gross Total Income arising from business u/s 80LA of Income Tax Act, 1961

Offshore Banking Units (OBU) of IFSC can avail 100%

eductions for any 10 consecutive years out of 15 years period.

• Other units of IFSC can avail 100% deductions for any 10

consecutive years out of 15 years period.

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Additional Condition

1.Certificate of CA in form No.10CCF shall be filed with Return of Income.

2.Copy of Permission Under IFSC Authority Act shall be filed with Return of Income.

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2. Reduced MAT (Minimum Alternate Tax)

Section 115JB of the Income Tax Act, 1961 provides that units of an IFSC which derives income solely in convertible foreign exchange, MAT shall be applicable at the rate of 9% Instead of rate of 15%.

3. Concessional Rate Of Tax On Capital�Section 112A & 111A Of The Income Tax Act, 1961

Provides That LTCG and STCG Arising Out Of Sale Of Equity Share Or Units Of Equity-oriented Funds Or Units Of A Business Trust On A RSE Established In IFSC Where Consideration For Sale Is Received In Foreign Exchange, Shall Be Taxed At The Concessional Rate Of 10%. *(Instead of 15% /10%)

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Exemption Provided To Aircraft Leasing

Sale of Shares:

If an IFSC unit involved in aircraft leasing sells equity shares to a non-resident or another IFSC unit engaged in aircraft leasing, it will be exempt from tax, under these conditions:

The operations of the domestic company (IFSC unit) must have started on or before 31st March 2026.

The capital gains (profit from the sale) should arise within 10 years from when the company started operations, or by Assessment Year 2034-35, whichever is later.

Dividend Income: Any dividend income received by an IFSC unit involved in aircraft leasing from another IFSC unit, also engaged in aircraft leasing, will be exempt from tax.

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Tonnage Tax Regime To Ship Leasing Entities In

IFSC:-�

Ship Leasing Entities In IFSC Will Be Able To Opt For Tonnage Tax Regime Within 3 Months From The End Of Their Tax Holiday Period.

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Exemption from ROI and PAN�

The CBDT has exempted:

No needed ROI and PAN In case Non Resident and foreign company derived only income from Investment Fund (i.e., Category - I /Category - II AIF) set up in an IFSC located in India,

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3.Indirect Tax Incentives:

Customs Duty: Exemption From Customs Duty For All Goods Imported In The SEZ Used For Authorized Operations. However, Any Removal Of Goods From SEZ Into Domestic Tariff Area (“DTA”) Would Attract Customs Duty.
Central Excise Duty: Exemption From Central Excise Duty On Domestic Procurement To Carry Out Authorized Operations. However, Any Removal Of Goods From SEZ Into Domestic Tariff Area (“DTA”) Would Attract Central Excise Duty.
Duty Drawback: Duty Drawback And Such Other Benefits On Goods Brought Into The SEZ.Goods Supplied To SEZ Regarded As Export For Customs Purpose.��

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4.Aircraft Leasing And Financing�

By Clause 9 Of The Gujarat Stamp Act, 1958 Issued Notification Dated August 4, 2020.
Exemption Of Stamp Duty Chargeable Under The Gujarat Stamp Act For The Period Of 10 Years.

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Goods And Service Tax (GST)

No GST On� - Services Received By Unit In SEZ/IFSC� - Services Provided To SEZ/IFSC Units Or Offshore Clients

• No GST On Transactions Carried Out In IFSC Exchanges

• Supply Of Goods Or Services From DTA To A Unit Located In SEZ Unit

Is Regarded As A Zero-rated Supply As Defined In Section 16 Of IGST

Act (Irrespective Of The Currency In Which Payment Is Made).�

• Supply Of Goods Or Services By SEZ To DTA Are Treated As Imports.

�• GST Is Applicable On Services Provided To DTA By SEZ Units.�

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SEBI Circular Summary

Date: 21 May 2021

Subject: Enhanced Limit for Overseas Investment by AIFs/VCFsSEBI, in consultation with the Reserve Bank of India, has doubled the overseas investment limit for eligible Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) from USD 750 million to USD 1,500 million.

All other regulatory provisions, terms, and conditions for such overseas investments remain unchanged.This circular is issued under Section 11(1) of the SEBI Act, 1992, aimed at protecting investors and regulating the securities market.

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