Section 115JB(7) Reduces MAT to 9% for IFSC Units Earning in Foreign Exchange, Boosting Global Financial Activity.

Section 115JB(7) of the Income Tax Act specifies that for units located in an International Financial Services Centre (IFSC) that derive income solely in convertible foreign exchange, the Minimum Alternate Tax (MAT) rate is reduced from 18.5% to 9%. An IFSC is defined under the Special Economic Zone Act, 2005, and convertible foreign exchange is determined by the Reserve Bank of India under FEMA, 1999. This provision offers a tax incentive for companies operating within IFSCs, promoting international financial transactions.