The government of India has been introducing various measures to strengthen the regulatory framework of GIFT City. GIFT City is the dream project of our Honourable Prime Minister, Mr. Narendra Modi and is set to become the first operational smart city of India. House to the first and only IFSC of India, GIFT City is the next preferred business destination.
GIFT City offers an ideal environment to do business. GIFT SEZ is a special area within the city which offers various advantages for conducting business activities. SEZ aims to boost the economy by exporting goods and services. GIFT City has been established to facilitate business in banking, finance, insurance and IT and ITES. SEZ, however, is an area designated in Gift city where one may set up units to carry specific manufacturing and trading activities and provide certain services.
GIFT City offers 5 major tax benefits:
-100% tax exemption
-9% Minimum alternate tax
-GST and customs duty for imports in SEZ exempt
-4% TDS on interest on overseas borrowing
-Long term capital gains tax and stamp duty exempt (Source:https://incorpadvisory.in/blog/tax-incentives-announced-in-budget/)
GIFT city has a lot of economic and fiscal advantages. It has been meticulously planned and structured to lure foreign investors and institutions. The government has introduced various reforms in every budget over the last few years to boost GIFT city.
Great insight to know benifits of GIFT SEaz