TaxTMI 
TaxTMI 
Central Government notifies that no deduction of tax shall be under the provisions of various section of the IT Act 1961
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....tax Act as specified in column (4) of the Table below in respect of the payments, as specified in column (3) of the said Table, made by any 'payer' to a person being a Unit of International Financial Services Centre, (hereinafter referred as 'payee'), as specified in column (2) of the said Table:- List of payments receivable by a Unit of International Financial Services Centre (IFSC) TABLE Sl. No. International Financial Services Centre (IFSC Unit) (Payee) Nature of receipt Relevant TDS provisions as per Income-tax Act, 1961 (1) (2) (3) (4) 1. Banking Unit Interest income on Exte....
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....ncy Credit rating fee Section 194J 11. Investment banker Investment banker fee Section 194J 12. Debenture trustee Trusteeship fee Section 194J 13. International Trade Finance Service or "ITFS" Commission income Section 194H 14. FinTech Entity Technical fee/Professional fee Section 194J Commission income Section 194H 2. For the purposes of this notification, - (a) "Banking Unit" shall have the same meaning as assigned to it in clause (c) of sub-regulation (1) of regulation 2 of the Internation....
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....r 9 under column (2) of the above table; (e) "Debenture trustee" shall have the same meaning as assigned to it in clause (m) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 and the provisions of regulations 3, 5, 6 and regulation 7 of the said regulations shall apply to the International Financial Services Centre Unit specified against serial number 12 under column (2) of the above table subject to registration of such debenture trustee by International Financial Services Centres Authority; (f) "Finance Company" shall have the same meaning as assigned to it in clause (e) of sub-regulation (1) of regulation 2 of the Internation....
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....n 2 of the Special Economic Zones Act, 2005 (28 of 2005); (l) "International Trade Finance Service" or "ITFS" shall have the same meaning as assigned to it in sub-paragraph (iii) of paragraph 2B of the International Financial Services Centres Authority's Circular, dated the 9th July, 2021 and paragraph 2E of the said circular shall apply to the International Financial Services Centre Unit specified against serial number 13 under column (2) of the above table; (m) "Investment adviser" shall have the same meaning as assigned to it in clause (t) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 (except the persons covered under pro....
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....) to Explanation under sub-section (3) of section 80LA of the Income-tax Act; (r) the services qualifying under this notification shall be the financial services under International Financial Services Centres Authority (Banking) Regulations, 2020 or International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021 or International Financial Services Centres Authority (Finance Company) Regulations, 2021 or International Financial Services Centres Authority (Fund Management) Regulations, 2022 or International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 or International Financial Services Centres Authority's Circular, dated the 9th July, 2021 or International Finan....
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....o the 'payee' only during the said previous years relevant to the ten consecutive assessment years as declared by the 'payee' in Form No. 1 for which deduction under section 80LA is being opted. The 'payer' shall be liable to deduct tax on payments as referred above for any other year. 3. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrie....