In a significant move to strengthen India’s push as a global financial hub, the Union Budget 2026–27 announced that businesses operating within the Gujarat International Finance Tec-City (GIFT City) will now enjoy a 20-year tax holiday — doubling the previous 10-year exemption period. This change aims to make GIFT City far more attractive to international and domestic financial players considering long-term operations in India. What the Tax Holiday Extension Means Under the new budget provisions, companies that set up operations in GIFT City’s International Financial Services Centre (IFSC) can now receive tax exemptions on business income for 20 consecutive years out of a 25-year window. After the expiration of this tax-free period, these entities will be subject to a concessional 15% corporate tax, which is highly competitive compared to the regular Indian corporate tax rates that can range between 25% to 35% elsewhere in the country. This extended tax holiday is designed to provide long-term fiscal certainty for financial firms and related businesses that may require extended planning horizons. Financial institutions typically make capital, infrastructure and staffing decisions years in advance, and knowing they can operate tax-free for two decades reduces long-term risk and encourages deeper investments. Level Playing Field… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
