The Union Budget 2026–27 has proposed a significant extension of tax incentives for entities operating within the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). The proposal seeks to enhance the long-term attractiveness of the IFSC regime and strengthen India’s position as a global financial services hub.
Under the revised framework, the tax holiday available to IFSC units, including financial services and leasing entities, has been extended from 10 years to 20 years within a 25-year block. Following the expiry of the tax holiday period, income from IFSC operations will be subject to a concessional tax rate of 15%, further reinforcing the competitiveness of GIFT City as a preferred jurisdiction for cross-border financial and leasing structures.
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