The government today said display of rough diamonds in the Special Notified Zone will not be taxable from April 2015 onwards in a bid to attract global diamond mining companies.
An SNZ has been set up in the Bharat Diamond Bourse in Mumbai.
The government considered the matter of taxation of income arising out of mere display of uncut diamonds in the zone.
"It has been decided that the activity of mere display of uncut diamond (without sorting or sale) inside a Special Notified Zone carried out on or after April 1, 2015, shall not be taxable under the provisions of the Income-Tax Act, 1961," the Central Board of Direct Taxes (CBDT) said in a statement.
A legislative amendment in this regard shall be carried out through Finance Bill 2016, it added.
