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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-10072026-274349
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 3581]
NEW DELHI, FRIDAY, JULY 10, 2026/ASHADHA 19, 1948
THE GAZETTE OF INDIA: EXTRAORDINARY
[PART II-SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 10th July, 2026
S.O. 3743(E). — In exercise of the powers conferred by section 400(1) read with section 147 of the
Income-tax Act, 2025(30 of 2025) (hereinafter referred to as the said Act), the Central Government hereby
notifies that no deduction of tax shall be made under the provisions of the said Act as specified in column
(4) of the Table below in respect of the payments, as specified in column (3) of the said Table, made by any
payer to a person being a Unit of International Financial Services Centre, (hereinafter referred as the payee),
as specified in column (2) of the said Table:-
List of payments receivable by a Unit of International Financial Services Centre (IFSC)
TABLE
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| Sl. | International | Nature of | Relevant TDS provisions |
| No. | Financial Services Centre (IFSC Unit) (Payee) | receipt | as per Income- tax Act, 2025 |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| (1) | (2) | (3) | (4) |
+=====+=========================================================+================================================+======================================================+
| 1. | Banking Unit | Interest income on | Section 393(2) [Table: S.No. 17] |
| | | External Commercial Borrowings | |
| | | Loans | |
| | | Professional fees | Section 393 (1) [Table: S. No. 6(iii)] |
| | | Referral fees | Section 393 (1) [Table: S.No. 1(ii)] |
| | | Brokerage income | Section 393 (1) [Table: S.No. 1(ii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 2. | IFSC Insurance Intermediary office | Commission income | Section 393 (1) [Table: S.No. 1(ii)] |
| | | on factoring and forfaiting | |
| | | services | |
| | | Insurance commission | Section 393(1) [Table: S.No. 1(i)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 3. | Finance Company | Interest income on | Section 393(1) [Table: S.No. 5(ii)&5(iii)]/Section |
| | | External Commercial Borrowings | 393(2) [Table: S.No. 17] |
| | | Loans | |
| | | Dividend income | Section 393 (1) [Table: S. No. 7] |
| | | Commission income | Section 393 (1) [Table: S.No. 1(ii)] |
| | | on factoring and forfaiting | |
| | | services | |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 4. | Finance Unit | Interest income on | Section 393(1) [Table: S.No. 5(ii) &5(iii)] Section |
| | | External Commercial Borrowings | 393(2) [Table: S.No. 17] |
| | | Loans | |
| | | Dividend income | Section 393 (1) [Table: S. No. 7] |
| | | Commission income | Section 393 (1) [Table: S.No. 1(ii)] |
| | | on factoring and forfaiting | |
| | | services | |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 5. | Fund Management entity | Professional fee | Section 393 (1) [Table: S. No. 6(iii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 6. | Broker Dealer | Dividend | Section 393 (1) [Table: S. No. 7] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 7. | Investment advisor | Investment advisory fee | Section 393 (1) [Table: S. No. 6(iii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 8. | Registered Distributor | Distribution fee and | Section 393 (1) [Table: S.No. 1(ii)] |
| | | Commission fee | |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 9. | Custodian | Professional fee | Section 393 (1) [Table: S. No. 6(iii)] |
| | | Commission fee | Section 393 (1) [Table: S.No. 1(ii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 10. | Credit rating agency | Credit rating fee | Section 393 (1) [Table: S. No. 6(iii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 11. | Investment banker | Investment banker fee | Section 393 (1) [Table: S. No. 6(iii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 12. | Debenture trustee | Trusteeship fee | Section 393 (1) [Table: S. No. 6(iii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 13. | International Trade Finance Service or "ITFS" | Commission income | Section 393 (1) [Table: S.No. 1(ii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
| 14. | FinTech Entity | Technical fee/Professional fee | Section 393 (1) [Table: S. No. 6(iii)] |
| | | Commission income | Section 393 (1) [Table: S.No. 1(ii)] |
+-----+---------------------------------------------------------+------------------------------------------------+------------------------------------------------------+
2. (1) For the purposes of this notification,-
(a) "Banking Unit” shall have the same meaning as assigned to it in clause (c) of sub-regulation (1) of
regulation 2 of the International Financial Services Centres Authority (Banking) Regulations, 2020;
(b) "broker dealer” shall have the same meaning as assigned to it in clause (g) of sub-regulation (1) of
regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 6 under column (2) of the said
table;
(c) "credit rating agency" shall have the same meaning as assigned to it in clause (j) of sub-regulation
(1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 10 under column (2) of the above
table subject to registration of such credit rating agencies by the International Financial Services Centres
Authority;
(d) "custodian" shall have the same meaning as assigned to it in clause (1) of sub-regulation (1) of
regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 9 under column (2) of the said
table;
(e) “debenture trustee” shall have the same meaning as assigned to it in clause (m) of sub-regulation (1)
of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 12 under column (2) of the above
table subject to registration of such debenture trustee by the International Financial Services Centres
Authority;
(f) "Finance Company" shall have the same meaning as assigned to it in clause € of sub-regulation (1)
of regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations,
2021;
(g) "Finance Unit” shall have the same meaning as assigned to it in clause (f) of sub-regulation (1) of
regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021;
(h) "FinTech Entity” shall have the same meaning as assigned to it in sub-paragraph (i) of paragraph 2
of the International Financial Services Centres Authority's Circular No. 521/IFSCA/FinTech/FE
Framework/2022-23, dated the 27th April, 2022 and paragraph 12 of the said circular shall apply to the
International Financial Services Centre Unit specified, against serial number 14 under column (2) of the said table;
(i) "fund management entity" shall have the same meaning as assigned to it in clause (p) of sub-
regulation (1) of regulation 2 of the International Financial Services Centres Authority (Fund Management)
Regulations, 2022 and the provisions of regulations 3, 4 and 5 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 5 under column (2) of the said
table;
(j) "IFSC insurance intermediary office” shall have the same meaning as assigned to it in clause (s) of
sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Insurance
Intermediary) Regulations, 2021;
(k) "International Financial Services Centre” shall have the same meaning as assigned to it in clause (q)
of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(l) "International Trade Finance Service” or “ITFS” shall have the same meaning as assigned to it in
sub-paragraph (iii) of paragraph 2(B) of the International Financial Services Centres Authority's Circular
No. 388/IFSCA/ITFS platform/2021-22, dated the 9th July, 2021 and paragraph 2€ of the said circular shall
apply to the International Financial Services Centre Unit specified against serial number 13 under column (2)
of the said table;
(m) “investment adviser” shall have the same meaning as assigned to it in clause (t) of sub-regulation (1)
of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 (except the persons covered under proviso to clause (f) of sub-regulation (1) of regulation
3), and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the International
Financial Services Centre Unit specified against serial number 7 under column (2) of the said table;
(n) "investment banker" shall have the same meaning as assigned to it in clause (u) of sub-regulation (1)
of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 11 under column (2) of the said
table;
(o) "registered distributor" shall have the same meaning as assigned to it in clause (dda) of sub-regulation
(1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries)
Regulations, 2021 and the provisions of regulations 3, 5, 6 and 7 of the said regulations shall apply to the
International Financial Services Centre Unit specified against serial number 8 under column (2) of the said
table;
(p) "Unit" shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special
Economic Zones Act, 2005 (28 of 2005);
(q) the "payee" under all circumstances shall remain an International Financial Services Centre Unit
within the meaning under section 2(61) and section 147(5)(b) of the said Act;
(r) the services qualifying under this notification shall be the financial services under the International
Financial Services Centres Authority (Banking) Regulations, 2020 or the International Financial Services
Centres Authority (Insurance Intermediary) Regulations, 2021 or the International Financial Services Centres
Authority (Finance Company) Regulations, 2021 or the International Financial Services Centres Authority
(Capital Market Intermediaries) Regulations, 2021 or the International Financial Services Centres Authority
(Fund Management) Regulations, 2022 or the International Financial Services Centres Authority's
Circular, dated the 9th July, 2021 or the International Financial Services Centres Authority's Circular, dated
the 27th April, 2022;
(s) the International Financial Services Centre Unit shall be registered under relevant regulation or
circular of International Financial Services Centres Authority.
(2) The above provisions are subject to the following conditions, namely:-
(a) The payee shall –
(i) furnish a statement-cum-declaration in Form No.1(N) annexed to this notification
(hereinafter referred to as the said Form) to the payer giving details of the twenty consecutive
tax years for which the payee opts for claiming deduction under section 147 of the said Act;
and
(ii) such statement-cum-declaration shall be furnished and verified in the manner prescribed in
the said Form, for each tax year out of twenty consecutive tax years for which the payee opts
for claiming deduction under section 147 of the said Act.
(b) The payer shall –
(i) not deduct tax on payment made or credited to payee after the date of receipt of copy of
statement- cum- declaration in the said Form from the payee; and
(ii) also furnish the particulars of all the payments made to payee on which tax has not been
deducted in pursuance of this notification in the statement of deduction of tax referred to in
section 397(3)(b) of the said Act read with rule 219 of the Income-tax Rules, 2026.
(3) The above relaxation shall be available to the payee only during the said twenty consecutive tax
years as declared by the payee in the said Form for which deduction under section 147 is being opted and the
payer shall be liable to deduct tax on payments as referred above for any other year.
3. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall lay down procedures, formats and standards for ensuring secure capture
and transmission of data and uploading of documents and they shall also be responsible for evolving and
implementing appropriate security, archival and retrieval policies.
4. This notification shall be deemed to have come into force on the 1st day of April, 2026.
FORM No. 1(N)
Statement-cum-declaration to be furnished by a Unit of International Financial Services Centre
(payee) to the payer
PART-A
+-------------------------------------------------+-----------------------------------+----------------+
| 1. Name | | (refer Note 1) |
+-------------------------------------------------+-----------------------------------+----------------+
| 2. PAN | | |
+-------------------------------------------------+-----------------------------------+----------------+
| 3. Name of the unit located in IFSC | | (refer Note 1) |
+-------------------------------------------------+-----------------------------------+----------------+
| 4. Address of the unit located in IFSC | | (refer Note 2) |
+-------------------------------------------------+-----------------------------------+----------------+
| 5. Contact number | Country Code | Number |
+-------------------------------------------------+-----------------------------------+----------------+
| 6. Email ID | | |
+-------------------------------------------------+-----------------------------------+----------------+
| 7. Tax year | | YYYY-YY |
+-------------------------------------------------+-----------------------------------+----------------+
PART-B
+-------------------------------------------------------------------------------------------------------+
| 8. For the purposes of determining “relevant tax year”, the details of permission or registration |
| obtained |
+-------------------------------------------------------------------------------------------------------+
| (i) Permission or Registration |
| Obtained under |
| |
| (select one) |
| |
| |
| |
| |
| |
| |
| |
| |
+-------------------------------------------------------------------------------------------------------+
| (ii) Authority |
+-------------------------------------------------------------------------------------------------------+
| (iii) Date | dd/mm/yyyy |
+-------------------------------------------------------------------------------------------------------+
| (iv) Reference number | |
+-------------------------------------------------------------------------------------------------------+
| 9. Period for which the deduction is opted to be claimed: | |
+-------------------------------------------------------------------------------------------------------+
| (i) From tax year : | |
+-------------------------------------------------------------------------------------------------------+
| (ii) To Tax year : | |
+-------------------------------------------------------------------------------------------------------+
| 10. Initial tax year for which deduction | YYYY-YY |
| was claimed | |
+-------------------------------------------------------------------------------------------------------+
(a) section 23(1)(a) of the Banking Regulation Act, 1949 (10 of
1949); or
(b) the Securities and Exchange Board of India Act, 1992 (15 of
1992); or
(c) the International Financial Services Centre Authority Act,
2019 (50 of 2019); or
(d) any other relevant law as mentioned in section 147 of the
Income-tax Act, 2025 (30 of 2025).
Statement-cum-Declaration
I .....................(name of the declarant) having Permanent Account Number ............in capacity as .......... of
....................(name of the payee), do hereby declare that the above-mentioned Unit is engaged in the business of
..................... and is eligible for deduction under section 147 of the Income-tax Act, 2025 (30 of 2025).
I further declare that the above-mentioned International Financial Services Centre Unit has opted to claim
the said deduction for the period from the tax year...........to the tax year.........
I further declare that the above mentioned Unit continues to be a unit working in International Financial
Services Centre and continues to be engaged in the business of ............ during the tax year ............... in
which this statement-cum- declaration is being submitted.
Verification
I...................... in capacity as.......... of.................... (name of the payee) do hereby certify that all the
particulars furnished above are correct and complete.
Place: Signature of the declarant
Date: Name:
Designation:
[To be signed by a person competent to sign the return of income as provided in section 265 of the Income-
tax Act, 2025 (30 of 2025)].
Note:-1. The name shall be provided in full.
Note:-2. The address shall contain (i) Country/Region, (ii) Flat/Door/Building, (iii) Road/Street/
Block/Sector, (iv) PIN/ZIP Code, (v) Post Office, (vi) Area/locality, (vii) District, (viii) State
Note:-3. Some of the information in the form would be pre-filled to the extent possible.
[Notification No. 80/2026/F.No. 275/19/2026-IT(B)]
RAJENDRA KUMAR MEENA, Under Secy.
Explanatory Memorandum: It is hereby certified that no person is being adversely affected by giving
retrospective effect to this notification.
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and Published by the Controller of Publications, Delhi-110054.
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