Jump to content

GIFT City: Difference between revisions

GIFT City (edit)

Revision as of 16:19, 19 March 2023

712 bytes removed ,  19 March 2023
no edit summary
Tags: Mobile edit Mobile web edit
No edit summary
Tags: Visual edit Mobile edit Mobile web edit
Line 304: Line 304:
# No dividend distribution tax (DDT) on dividends paid to non-residents: Companies operating within the SEZ areas of GIFT City are exempt from paying dividend distribution tax (DDT) on dividends paid to non-resident shareholders.
# No dividend distribution tax (DDT) on dividends paid to non-residents: Companies operating within the SEZ areas of GIFT City are exempt from paying dividend distribution tax (DDT) on dividends paid to non-resident shareholders.
# No tax on interest income from bonds issued in IFSC: Interest income earned by non-residents on bonds issued in the IFSC area of GIFT City is exempt from tax in India.
# No tax on interest income from bonds issued in IFSC: Interest income earned by non-residents on bonds issued in the IFSC area of GIFT City is exempt from tax in India.
#


GIFT City stands for Gujarat International Finance Tec-City, which is India's first smart city built for the financial services sector.
It was launched in 2007 as a joint venture between the Government of Gujarat and Infrastructure Leasing and Financial Services (IL&FS).
GIFT City is located in Gandhinagar, the capital city of Gujarat, and covers an area of over 886 acres.
It is being developed as a global financial hub to attract financial services companies and create employment opportunities in the state.
GIFT City offers several tax benefits to businesses that operate within its premises.
Companies can take advantage of these tax benefits to reduce their overall tax liability and increase profitability.
Here are 50 tax benefits offered by GIFT City:


'''Corporate Income Tax Benefits'''
'''Corporate Income Tax Benefits'''
Line 327: Line 321:
* Employees of companies operating in GIFT City can enjoy a tax-free income up to INR 20 lakh per annum for the first five years from the date of employment.
* Employees of companies operating in GIFT City can enjoy a tax-free income up to INR 20 lakh per annum for the first five years from the date of employment.
* No tax on income earned from offshore funds and investments.
* No tax on income earned from offshore funds and investments.
No tax on income earned from an IFSC.
 
Goods and Services Tax (GST) Benefits
* No tax on income earned from an IFSC. Goods and Services Tax (GST) Benefits
 
* Exemption from GST on services provided to companies operating in GIFT City.
* Exemption from GST on services provided to companies operating in GIFT City.
* Exemption from GST on the supply of goods and services from a unit in GIFT City to another unit in the same zone or to a unit located outside India.
* Exemption from GST on the supply of goods and services from a unit in GIFT City to another unit in the same zone or to a unit located outside India.
Line 348: Line 343:
* Exemption from infrastructure development fees for the first five years from the date of commencement of business.
* Exemption from infrastructure development fees for the first five years from the date of commencement of business.
* Exemption from electricity duty for the first five years from the date of commencement of business.
* Exemption from electricity duty for the first five years from the date of commencement of business.
Exemption from entry tax on the import of machinery and equipment for the first five years from the date of commencement of business.
 
* Exemption from entry tax on the import of machinery and equipment for the first five years from the date of commencement of business.
 
* Exemption from octroi and local body tax on the import of goods for the first five years from the date of commencement of business.
* Exemption from octroi and local body tax on the import of goods for the first five years from the date of commencement of business.


Line 362: Line 359:
* Companies operating in GIFT City are eligible for reimbursement of up to 50% of the employer's contribution towards employee provident fund (EPF) and Employees' State Insurance (ESI) for a period of three years from the date of commencement of business.
* Companies operating in GIFT City are eligible for reimbursement of up to 50% of the employer's contribution towards employee provident fund (EPF) and Employees' State Insurance (ESI) for a period of three years from the date of commencement of business.
* Exemption from professional tax on employees working within GIFT City.
* Exemption from professional tax on employees working within GIFT City.
Research and Development (R&D) Tax Benefits
'''Research and Development (R&D) Tax Benefits'''
* Companies engaged in R&Dactivities within GIFT City are eligible for a deduction of 150% of the expenses incurred towards R&D.
* Companies engaged in R&Dactivities within GIFT City are eligible for a deduction of 150% of the expenses incurred towards R&D.
* Exemption from customs duty and IGST on the import of R&D equipment and materials.
* Exemption from customs duty and IGST on the import of R&D equipment and materials.
Line 372: Line 369:
'''Securities Transaction Tax (STT) Benefits'''
'''Securities Transaction Tax (STT) Benefits'''
* No STT on the sale of securities traded on a recognized stock exchange located within GIFT City.
* No STT on the sale of securities traded on a recognized stock exchange located within GIFT City.
Transfer Pricing Benefits
'''Transfer Pricing Benefits'''
* Companies operating in GIFT City are exempt from transfer pricing provisions for transactions with associated enterprises located outside India.
* Companies operating in GIFT City are exempt from transfer pricing provisions for transactions with associated enterprises located outside India.


Line 402: Line 399:
'''Tax Incentives for Units in the SEZ'''
'''Tax Incentives for Units in the SEZ'''
* Companies located in the Special Economic Zone (SEZ) within GIFT City are eligible for tax incentives such as income tax exemption for the first five years, and 50% exemption for the next five years.
* Companies located in the Special Economic Zone (SEZ) within GIFT City are eligible for tax incentives such as income tax exemption for the first five years, and 50% exemption for the next five years.
No Wealth Tax
'''No Wealth Tax'''
* No wealth tax is levied on individuals or companies operating within GIFT City.
* No wealth tax is levied on individuals or companies operating within GIFT City.


Line 445: Line 442:
'''No Capital Gains Tax'''
'''No Capital Gains Tax'''
* No capital gains tax is levied on the transfer of securities, derivatives, and other financial instruments traded within GIFT City.
* No capital gains tax is levied on the transfer of securities, derivatives, and other financial instruments traded within GIFT City.
No Securities Transaction Tax (STT)
'''No Securities Transaction Tax (STT)'''
* No Securities Transaction Tax (STT) is levied on transactions in securities, derivatives, and other financial instruments traded within GIFT City.
* No Securities Transaction Tax (STT) is levied on transactions in securities, derivatives, and other financial instruments traded within GIFT City.


'''No Commodities Transaction Tax (CTT)'''
'''No Commodities Transaction Tax (CTT)'''
* No Commodities Transaction Tax (CTT) is levied on transactions in commodities traded within GIFT City.
* No Commodities Transaction Tax (CTT) is levied on transactions in commodities traded within GIFT City.
No Transfer of Title Tax
'''No Transfer of Title Tax'''
* No transfer of title tax is levied on the transfer of immovable property within GIFT City.
* No transfer of title tax is levied on the transfer of immovable property within GIFT City.
No Wealth Tax on Investments
'''No Wealth Tax on Investments'''
* No wealth tax is levied on investments in securities, derivatives, and other financial instruments held within GIFT City.
* No wealth tax is levied on investments in securities, derivatives, and other financial instruments held within GIFT City.


'''No Gift Tax'''
'''No Gift Tax'''
* No gift tax is levied on gifts made within GIFT City.
* No gift tax is levied on gifts made within GIFT City.
No Estate Duty
'''No Estate Duty'''
* No estate duty is levied on inheritance of assets located within GIFT City.
* No estate duty is levied on inheritance of assets located within GIFT City.
* No Cess or Surcharge
* No Cess or Surcharge
Anonymous user
Retrieved from "https://en.bharatpedia.org/wiki/Special:MobileDiff/381829"