29 December 2018

Income Tax Amemded to Promote - International Financial Service Centre. - CBDT notification dated 26th Dec 2018

The following amendment has been done vide notification dated 26th Dec 2018.

18. Measures to promote International Financial Services Centre (IFSC)
18.1 Section 47 of the Income-tax Act provides for tax neutrality relating to certain transfers.
18.2 In order to promote the development of world class financial infrastructure in India, the aforesaid section has been amended so as to provide that transactions in the following assets, undertaken by a non-resident on a recognised stock exchange located in any International Financial Services Centre, shall not be regarded as transfer, if the consideration is paid or payable in foreign currency:—
(i)

bond or Global Depository Receipt, as referred to in sub-section (1] of section 115AC of the Income-tax Act; or
(ii)

rupee denominated bond of an Indian company; or
(iii)

derivative.
18.3 Before amendment by the Act section 115JC of the Income-tax Act provided for alternate minimum tax at the rate of 18.5% of adjusted total income in the case of all non-corporate persons.
18.4 In order to promote the development of world class financial infrastructure in India, section 115JC of the Income-tax Act has also been amended to provide that in case of a unit located in an International Financial Service Centre, the alternate minimum tax under section 115JC shall be charged at the rate of 9%.
18.5 Consequential amendment has also been made to section 115JF of the Income-tax Act.
18.6 Applicability: These amendments take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

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