The Central Board of Direct Taxes exempted the dividend paid by an IFSC (International Financial Services Centre) unit that engages in aircraft leasing to another such unit there from tax deducted at source (TDS). The move is likely to boost the aircraft leasing business at GIFT City and bring it on par with the concession available to global hubs.
The payee would be required to furnish a statement-cum-declaration with the tax department to claim exemption. The notification in this regard comes into effect on September 1, 2023.
