Key Points
The extension of tax benefits till March 31, 2025, benefits eligible startups, sovereign wealth funds, pension funds, and units in the International Financial Services Centre (IFSC) GIFT City..
The decision to extend tax benefits that were set to expire in FY24 by a year will provide global investors and eligible companies with the clarity and certainty they need to enhance investment and operational planning, experts said..
Several sovereign wealth funds and pension fund managers told ET that while the tax benefits were announced in 2021, the entire process, from application to approval to securing a deal, was time-consuming and they believe a longer extension period would have been more favourable...
However, a startup founder told ETthat there arent many startups that qualify for this exemption a 100% tax exemption on profits and gains derived by an eligible startup for any three consecutive years out of a period of ten years due to the governments challenging eligibility criteria and approval process, which serve as significant obstacles...
The budget has allowed offshore banking units (OBUs) to set up investment divisions in GIFT City by March 31, 2025, to avail capital gains tax exemption on all securities except shares of Indian companies...
