Learn more about IFSC.
Globally, Financial Centres are locations with an agglomeration of participants in banking, asset management, insurance and financial markets with venues and supporting services for these activities.
The world has witnessed the transformation of New York, London, Singapore, Hong Kong and Tokyo as Global Financial Centres Recently, there has been a spurt of newer Financial Centres in Dubai, Malaysia, Kazakhstan and few other countries.
The Government of India (‘ operationalized India’s first IFSC in Gujarat at GIFT City in April 2015.
With the launch of the IFSC at GIFT City, the GoI had taken the first step to bring financial services transactions which are relatable to India, back to India.
The core objectives for developing an IFSC in India are outlined below:
The Government of India established International Financial Services Centres Authority in April 2020 under the International Financial Services Centres Authority Act passed by the Indian Parliament.
For the first time, the regulatory powers of four financial services regulators in India, namely, Reserve Bank of India (RBI), Securities & Exchange Board of India (SEBI), Insurance Regulatory Development Authority of India (IRDAI), Pension Fund Regulatory Development Authority of India (PFRDAI), have been vested in IFSCA with respect to regulation of financial institutions, financial services and financial products in the IFSC, making it a unified regulator for the IFSC.
Corporate Income tax Holiday of 10 years out of a block of 15 years
However, No MAT where domestic company has opted for concessional Tax Regime
IFSC Units are exempted from 100% of Customs duty on Goods imported from outside India
On all Input services/Output services to Offshore clients/Other IFSC Units/SEZ Units
All eligible IT/ITES Units are entitled to 25% of Eligible CAPEX expenditure subject to max. of 50 Cr. as one time capex subsidy.
All eligible IT/ITES Units are entitled to 15% of annual eligible OPEX expenditure subject to max. of 20 Cr. Per year for a period of 5 years.
For every new and unique job created which are hired locally and retained for a minimum period of 1 year by the unit shall be eligible for 50% of One Month CTC upto 50k for Male/60k for Female as one time incentive
Interest subsidy at 7% on term loan or actual interest paid whichever is lower with a ceiling of Rs. 1 Cr. Per annum.