Relief from double taxation on ODIs extended at the Gift City IFSC

Experts say move will make investments more lucrative

The Central Board of Direct Taxes (CBDT) has extended the exemption on income received by overseas investors through the distribution of income from offshore derivative instruments (ODIs) of entities based at the International Financial Services Centres (IFSC).

Experts said that the move will make investments more lucrative and deepen the product offerings by offshore banking units based out of Gift City IFSC.

Financial institutions are already required to pay tax on the transactions involving equity shares.

The new provisions remove double taxation in the hands of overseas investors during distribution of the same amount on which financial institutions have already