Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 16th October, 2015

A “Special Notified Zone” has been established in the Bharat Diamond Bourse. To facilitate the participation of leading diamond mining companies of the world in this zone, the matter of taxation of income arising from the activity of mere display of uncut diamonds (without sorting or sale) in the Special Notified Zone has been considered by the Government.

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 1st April, 2015 shall not be taxable under the provisions of the Income-tax Act, 1961. Legislative amendment in this regard shall be carried out through Finance Bill 2016.

(Shefali Shah)

Pr. Commissioner of Income Tax (OSD)

Official Spokesperson, CBDT

Tax exemption for mere display of uncut diamonds in Special Notified Zone clarifies non-taxability and legislative amendment follows. The government declares that mere display of uncut diamond (without sorting or sale) inside a Special Notified Zone shall not be taxable under the Income-tax Act for displays carried out on or after 1st April, 2015, and that a legislative amendment to formalise this treatment will be introduced through the Finance Bill 2016.