1. Eligible Assessees:
- Scheduled bank having an offshore banking unit in a Special Economic Zone or
- Foreign Bank having an offshore banking unit in a Special Economic Zone, or
- Unit of International Financial Services Centre
2. Conditions: Gross total income of the assessee includes-
- Income from the Offshore Banking Unit in a Special Economic Zone,
- Income from business referred in Section 6(1) of Banking Regulation Act, with an undertaking
- Located in Special Economic Zone,
- Which develops, develops and operates or operates and maintains a Special Economic Zone
Income from any unit of the International Financial Services Centre from its business for which it has been approved for setting up in such a centre in a Special Economic Zone.
3. Documents to be submitted with return of income:
- Auditor’s Report: Chartered Accountant Report in Form No.10CCF certifying that the deduction has been correctly claimed in accordance with the provisions of this section.
- Permission Letter: Copy of permission obtained under section 23(1)(a) of Banking Regulation Act
Amount of deduction:
- For first five assessment years relevant to the previous year in which permission under Banking Regulation Act or from SEBI or under any other law was obtained- 100% of such income shall be deducted
- Next five years- 50% of such income shall be deducted
