Govt. notifies exemption for IFSC Units from TDS under the IT Act; Effective April 2024.

The CBDT vide Notification No. 28/2024 dated March 07, 2024, notifies that the Units of the International Financial Services Centre (IFSC) are exempt from tax deductions under various sections of the Income-tax Act, 1961 (“the IT Act”), for various types of income including interest, professional fees, dividends, and commissions. This exemption applies to payments made by any payer to a qualifying IFSC unit, outlined across several categories like banking, insurance intermediaries, finance companies, and more. The IFSC units must adhere to specified conditions and provide necessary declarations to avail of these benefits, effective from April 01, 2024.

The Complete Notification can be accessed at: https://www.a2ztaxcorp.com/wp-content/uploads/2024/03/Notification-under-section-197A-of-the-Income-tax-Act-1961.pdf

Source from: https://www.a2ztaxcorp.com/govt-notifies-exemption-for-ifsc-units-from-tds-under-the-it-act-effective-april-2024/