CBDT Issues Notification for Exemption from TDS on Certain Payments to IFSC Units under Income-tax Act, 2025:

The CBDT has notified the following payments receivable by IFSC Units as eligible for TDS exemption under the Income-tax Act, 2025.

List of TDS-Exempt Payments to IFSC Units

Vanshika verma

Jul 13, 2026

Last update on Jul 13, 2026

The Central Board of Direct Taxes (CBDT) issued a notification under the Income-tax Act, 2025 on 10 July 2026 by Ministry of Finance (Department of Revenue). The notification states that certain payments made to a Unit located in an International Financial Services Centre (IFSC) shall be exempt from Tax Deducted at Source (TDS).

Such exemption is only in respect of the specified types of payments and under the specified provisions of the Income-tax Act as given in the table annexed to the notification.

List of Payments receivable by a Unit of International Financial Services Centre (IFSC)

Sl. No.	International Financial Services Centre (IFSC Unit) (2)	Nature of receipt (3)	Relevant TDS provisions as per Income-tax Act, 2025 (4)
1	Banking Unit	Interest income on External Commercial Borrowings Loans	Section 393(2) [Table: S.No. 17]
		Professional fees	Section 393 (1) [Table: S. No. 6(ii)]
		Referral fees	Section 393 (1) [Table: S.No. 1(ii)]
		Brokerage income	Section 393 (1) [Table: S.No. 1(ii)]
		Commission income on factoring and forfaiting services	Section 393 (1) [Table: S.No. 1(ii)]
2	IFSC Insurance Intermediary office	Insurance commission	Section 393(1) [Table: S.No. 1(i)]
3	Finance Company	Interest income on External Commercial Borrowings Loans	Section 393(1) [Table: S.No. 6(ii)]/Section 393(2) [Table: S.No. 17]
		Dividend income	Section 393 (1) [Table: S. No. 7]
		Commission income on factoring and forfaiting services	Section 393 (1) [Table: S.No. 1(ii)]

For complete information, refer to the following notification:

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Vanshika verma

Content Writer

Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.