Offshore banking unit deduction covers only specified income, with long-term relief and strict compliance conditions. Deduction is available only for specified income of a scheduled bank, a foreign bank with an Offshore Banking Unit in a Special Economic Zone, or a Unit in an International Financial Services Centre, and not for general business income. Offshore Banking Units receive deduction for 20 consecutive tax years, while an IFSC Unit may choose any 20 consecutive years out of 25 years, subject to prescribed certification and permission requirements. The deduction is denied where a new unit is formed by splitting up, reconstruction, reorganisation, or transfer of an existing Indian business, and quarterly reporting applies for certain IFSC remittances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Offshore banking unit deduction covers only specified income, with long-term relief and strict compliance conditions.
Deduction is available only for specified income of a scheduled bank, a foreign bank with an Offshore Banking Unit in a Special Economic Zone, or a Unit in an International Financial Services Centre, and not for general business income. Offshore Banking Units receive deduction for 20 consecutive tax years, while an IFSC Unit may choose any 20 consecutive years out of 25 years, subject to prescribed certification and permission requirements. The deduction is denied where a new unit is formed by splitting up, reconstruction, reorganisation, or transfer of an existing Indian business, and quarterly reporting applies for certain IFSC remittances.
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