Effective April 1, the government has exempted specific payments made to units in International Financial Services Centre (IFSC) from TDS provisions, aiming to ease tax compliance. The CBDT notification specifies 14 service sectors, including FinTech, banking, and insurance, where no TDS will be deducted for payments like professional fees, brokerage income, and interest on ECBs. This move broadens exemptions beyond leasing transactions, offering significant relief to IFSC units. The process involves furnishing Form No. 1 by the IFSC unit to the payer, and the relaxation will be applicable for ten consecutive assessment years, promoting IFSC as a global investment destination.
Government Exempts Certain Payments to IFSC Units from TDS Provisions
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