CBDT expands IFSC Benefits to FPIs and OTC Derivatives under Income Tax Rules

The CBDT (Central Board of Direct Taxes) has expanded IFSC (International Financial Services Centre) benefits to FPIs (Foreign Portfolio Investors) and OTC (Over-the-Counter) derivatives under Income Tax Rules. This move further incentivizes financial activities within India's IFSCs, aiming to establish them as global financial hubs. By extending tax benefits, the government seeks to attract more foreign investment and boost trading in sophisticated financial instruments like OTC derivatives, enhancing liquidity and market depth within these special economic zones. This aligns with India's broader strategy to liberalize and globalize its financial markets.