India’s Central Board of Direct Taxes (CBDT) issued Notification No. 6/2025, providing rules for an exemption from tax collection at source (TCS) on goods purchased by units of an International Financial Services Centre (IFSC), effective from 1 January 2025.
This Notification was issued by India’s Central Board of Direct Taxes on 6 January 2025.
Under the notification, IFSC Units claiming deductions under Section 80LA of the Income-tax Act are exempt from TCS on goods purchased.
To qualify for the exemption, the buyer must submit a verified statement-cum-declaration in Form No. 1A, specifying the ten consecutive assessment years for which the deductions under Section 80LA are claimed.
Once the form is received, sellers are obligated to stop collecting TCS on transactions with IFSC Units and must report these exempt transactions accurately in their tax collection statements. This exemption is available only to IFSC Units claiming deductions under Section 80LA, streamlining the process for eligible entities.
