Section 80LA- Deduction of Offshore Banking Unit(OBU)/ International Financial Services Centre (IFSC)
Eligible Assessee
- Scheduled bank or Foreign bank having an Offshore Banking Unit in SEZ or
- Unit of International Financial Services Centre
>>> OBU means a branch or unit of a bank located in a SEZ and which has obtained required permissions under the Banking Regulation Act.
Eligible Income
- Any income arising from any Offshore Banking Unit in Special Economic Zones.
- Any income from any unit of International Financial Services Centre
- From the transfer of an aircraft, which was leased by a unit of International Financial Services
- Centre and such unit has commenced Operation up to 31/03/2024.
- From Banking business with undertaking located in a Special Economic Zones
- From Banking business any undertaking which develops, develops and operates or operates and maintains a Special Economic Zone.
Eligible Amount of Deduction
A Scheduled Bank or Foreign Bank having Offshore Banking Unit in SEZ
- For first 5 years is 100% of income (Beginning with year when permission under SEBI Act/ Banking Regulation Act)
- For next 5 years is 50% of such income.
Unit of International Financial Services Centre
- 100% of such income for any 10 consecutive assessment year at the option of the assessee, out of 15 years. beginning with the year in which the permission under SEBI Act/Banking Regulations Act/IFSC Authority Act, 2019.
Additional Conditions
- Need to obtain certificate of Charted Accountant in form no. 10CCF shall be filed with return of income.
- Copy of the permission u/s 23(1) of the the Banking Regulation Act or IFSC Authority Act, 2019. In case Offshore Banking Unit shall be filed with return of Income.
