Investor Presentaiton

- Key Amendments – Finance Act, 2023 Union Budget 2023 has empowered GIFT IFSC by delegating the registration / approval power that earlier lied with SEZ authorities to the IFSCA. • Detailed guidelines/notifications yet to come A single-window registration system will be in place. • It will simplify the approval process and boost ease of doing business. Detailed guideline/notifications yet to come. Non-applicability of surcharge and cess on certain incomes earned by Specified Fund in International Financial Services Centre (IFSC) fin • Surcharge and cess shall not be applicable while computing advance tax on the prescribed income (i.e. any income other than capital gains) earned by the Specified Fund (specifically defined under the Act). • Applicable only for entities set up as a trust. Funds set up as LLP / Company / body corporate and foreign IBUs (being corporate structure) not covered within ambit of relaxation. Taxability of dividend income received by non-resident from unit in IFSC • Dividend income received by a non-resident from an IFSC (currently taxable at the rate of 20% plus surcharge and cess) shall be taxable at the rate of 10% (plus surcharge and cess). Relaxation of condition prescribed for tax exemption of Offshore Derivative Instrument (ODI) holders • Income distributed on ODIs to NRs will be exempt to the extent such income is chargeable to tax in the hands of the IBU registered as FPI. Concessional tax rate on interest income on specified bonds listed on IFSC stock exchange Presently, interest income received by non-resident from specified bonds issued prior to 1 July 2023 and which are listed only on IFSC stock exchanges are taxed at the rate of 4%. ⚫w.e.f. 01-07-2023, interest income received by non-resident on specified bonds issued on or after 1 July 2023 and listed only on IFSC exchange will be chargeable to tax at the rate of 9%. Khandhar Mehta & Shah | Chartered Accountants 80

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