CBDT Notifies Exemption for IFSC Units from Section 206C(1H) Tax Collection Under Income-tax Act

The Central Board of Direct Taxes (CBDT) has notified an exemption for units located in International Financial Services Centres (IFSCs) from the provisions of Section 206C(1H) of the Income Tax Act. This section, which mandates tax collection at source (TCS) on the sale of goods, now does not apply to IFSC units. This move is part of the government’s efforts to make the IFSC more attractive to global businesses and boost India’s standing as an international financial hub. The exemption aims to reduce the regulatory burden on IFSC units, encouraging investment and facilitating smoother operations for foreign investors.