Finance Minister Nirmala Sitharaman, in her Budget speech extended the cut-off date for companies seeking benefits under the IFSC framework by five years, now set at March 31, 2030. Other key announcements were also made towards IFSC. It is proposed to exempt the proceeds received on life insurance policy issued by IFSC insurance intermediary office without the condition on maximum premium amount.
It is proposed to extend the exemption in section 10(4H) to capital gains for non-resident or a unit of IFSC on transfer of equity shares of a ship leasing domestic company. It is proposed to extend the exemption in section 10(34B) to dividend paid by a ship leasing company in IFSC to a unit of IFSC engaged in ship leasing.
It is proposed that any advance or loan between two group entities, where one of the group entities is set up in IFSC for undertaking treasury activities or treasury services, shall be excluded from dividend. It is proposed to provide a simplified safe harbor regime for investment funds managed by fund manager based in IFSC. It is further proposed to extend the relaxation of conditions for IFSC units till 31st March, 2030.