Fiscal Incentives available under SEZ Act 2005 for IFSC units
- Since India has many restrictions on the financial sector, such as partial capital account convertibility,
high SLR (statutory liquidity ratio) requirements and foreign investment restrictions, an SEZ can serve as a testing ground
for financial sector reforms before they are rolled out in the entire nation.
- Exemption as per SEZ Act, 2005: Apart from SEZ related incentives as per the SEZ Act, 2005 there is an exemption from the securities
transaction tax leviable under section 98 of the Finance (No. 2) Act, 2004 in case the taxable securities transactions are entered into
by a non-resident through the International Financial Services Centre;