TDS Exemption for Eligible IFSC Units

The Central Board of Direct Taxes (CBDT) has issued Notification No. 80/2026 [F. No. 275/19/2026-IT(B)], announcing that certain payments received by eligible units located in International Financial Services Centres (IFSC) will be exempt from Tax Deducted at Source (TDS) as per the Income-tax Act, 2025.

Payments Covered Under Exemption

This exemption applies to a range of specified financial service-related incomes, including but not limited to:

• Interest
• Dividends
• Professional fees
• Commission
• Brokerage
• Other incomes related to financial services

This initiative aims to streamline financial operations and provide a conducive environment for units operating within IFSCs.

For more information, please refer to the official notification: https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-07/Notification-80-2026.pdf