IFSC tax incentives expanded to ease fund relocations, clarify exemptions, and simplify non resident taxation.
Amendments relax compliance for investment funds by easing indirect participation thresholds and restoring executive modification powers; expand the relocation regime to include retail schemes and ETFs for tax neutral transfers into the IFSC; introduce a presumptive taxation scheme for non residents providing technology services for electronics manufacturing with exclusions for permanent establishment and royalty rules; correct and align IFSC insurance and specified fund exemptions with IFSCA conditions; extend derivative transaction exemptions to FPIs in the IFSC; refocus Chapter XIV B on undisclosed income and add Section 143(1) checks for return inconsistencies; and broaden the definition of capital asset to include securities held by Alternative Investment Funds under SEBI and IFSCA.