 "GIFT City")
An anomaly has been detected in tax concessions given to foreign investors that trade in rupee bonds on exchanges in the International Financial Services Centre (IFSC) at Gujarat International Fin-Tec City (GIFT City).
In a bid to boost listing bonds at the IFSC, the Union Budget provided a reduction in withholding tax for investment in rupee-denominated bonds to 4 per cent from 5 per cent earlier. However, the overall tax rate for these investors has been kept unchanged at 5 per cent.
In a bid to boost listing bonds at the IFSC, the Union Budget provided a reduction in withholding tax for investment in rupee-denominated bonds to 4 per cent from 5 per cent earlier. However, the overall tax rate for these investors has been kept unchanged at 5 per cent.
This means overseas investors will have to file returns and pay the additional 1 per cent tax
