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ARTICLE · 04 FEBRUARY 2026

Union Budget 2026

Units in an International Financial Services Centre (IFSC) and Offshore Banking Units (OBUs)...

IndiaTax

Direct Tax

GIFT IFSC – Extension of Tax Holiday

Particulars Existing Provision Budget 2026 Proposal
Eligible entities Units in an International Financial Services Centre (IFSC) and Offshore Banking Units (OBUs) Units in an IFSC and OBUs
Period of 100% tax holiday – IFSC units 10 consecutive tax years out of 15 tax years 20 consecutive tax years out of 25 tax years
Period of 100% tax holiday– OBUs 10 consecutive tax years 20 consecutive tax years
Tax rate after expiry of tax holiday Taxed at normal applicable rates Business income to be taxed at a concessional rate of 15%

‒ This proposal shall take effect from 01 April 2026 and shall accordingly apply from tax year 2026–27 onwards.

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