No TDS on Payments to IFSC Units: CBDT Notification 80/2026 Explained
Quick Summary Box
| Particulars | Details |
|---|---|
| Notification | No. 80/2026 [S.O. 3743(E)], dated 10 July 2026 |
| Issued Under | Section 400(1) read with Section 147, Income-tax Act, 2025 |
| Effective From | 1 April 2026 (retrospective; notified 10 July 2026) |
| Relief | No TDS required on specified payments to eligible IFSC units |
| Eligible Categories | 14 types of IFSC entities (GIFT City) |
| Compliance Trigger | Form No. 1(N) — Statement-cum-Declaration from the payee |
| Duration of Relief | Limited to 20 consecutive tax years opted by the IFSC unit under Section 147 |
Why This Notification 80/2026 Matters
If your client base includes anyone paying interest, dividends, professional fees, commission, brokerage, or other financial-service income to an entity operating out of India’s International Financial Services Centre (GIFT City, Gujarat), this notification directly changes their TDS obligations — retroactively, from the start of the current tax year.
Which IFSC Entities Are Covered
The relief extends to 14 categories of IFSC units, including:
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