Budget announcement on tax incentives to give traction to IFSC sector: FM Sitharaman

Sitharaman said the government has rapidly built on the IFSC owing to its cost-effective feature

Finance Minister Nirmala Sitharaman on Friday said the tax sops announced in the recent budget will give traction to the international financial sector in GIFT City.

Speaking at the India Aircraft Leasing Summit, she said the government has rapidly built on the International Financial Services Centre (IFSC) owing to its cost-effective feature.

"The package announced through the budget is to give traction to the international financial sector in GIFT City," Sitharaman said.

Sitharaman in her 2021-22 Budget speech had said that the government is committed to make the International Financial Services Centre (IFSC) in GIFT City a global financial hub.

"In addition to the tax incentives already provided, I propose to include, among others, tax holiday for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors; tax incentive for relocating foreign funds in the IFSC; and to allow tax exemption to the investment division of foreign banks located in IFSC," she had said.

Gujarat International Finance Tec-City (GIFT City) is the country's only international financial services centre.