Investor Presentaiton
Key Amendments - Finance Act, 2023
Exemption provided to Aircraft leasing entities in IFSC
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• Sale of equity shares of an IFSC unit engaged in aircraft leasing to a non-resident or another IFSC unit engaged in aircraft leasing shall be exempt
provided:
- The operations of the domestic company in IFSC shall commence on or before 31 March, 2026;
- The capital gains should have arisen within a period of 10 years from the year in which the domestic company has commenced operations or AY
2034-35, whichever is later.
• Dividend income received by a unit in IFSC engaged in aircraft leasing from another unit in IFSC also engaged in aircraft leasing shall be exempt.
TCS provisions on LRS remittances extended to IFSC
• Tax Collected at Source (TCS) on foreign remittances under LRS by resident individuals is increased from 5% to 20% without any threshold,
excluding remittances for education and medical treatment.
• Further, currently TCS is appliable on remittances made under LRS outside India. It is now expanded the scope of remittance subjected to TCS by
covering all remittance made under LRS and not just remittances made "out of India" (thus including remittance to IFSC), with effect from July 1,
2023.
Khandhar Mehta & Shah | Chartered Accountants
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