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IFSC Authority announces framework for aircraft operating companies

The Government of India, on the recommendation of (IFSCA), on October 16, 2020 had notified aircraft lease norms, an official statement said

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aircraft | Nirmala Sitharaman | GIFT City IFSC

Press Trust of India  |  New Delhi 

GIFT City

The International Financial Services Centres Authority (IFSCA) on Friday issued a framework for operating leases to make GIFT City in Gujarat a hub for such business.

To promote such business, Finance Minister earlier this month in her Budget proposed tax exemption for leasing companies operating out of the first IFSC in the country -- the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.

"I propose to include, among others, tax holiday for capital gains for leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors... located in IFSC," the minister had said in her Budget speech.

The Government of India, on the recommendation of (IFSCA), on October 16, 2020 had notified aircraft lease norms, an official statement said.

Towards this end, IFSCA had issued a consultation paper on Draft Aircraft Leasing Regulations on December 16, 2020, it said.

"Based on the interest shown by various participants and the feedback of various stakeholders received, a 'Framework for Aircraft Operating Leases' has been issued by IFSCA today. This will enable the aircraft operating lease business in IFSCs in India, the projected market size of which is more than USD 50 Billion," it said.

The IFSCA was established on April 27, 2020 with its head office in Gandhinagar.

In December 2019, Parliament passed a bill to set up a unified authority for regulating all financial activities at IFSCs in the country.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, February 19 2021. 22:42 IST
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