Non-residents and foreign companies opening bank accounts in IFSC Gift City will not have to furnish PAN and can instead file a declaration.
The non-resident or the foreign company opening a bank account at the International Financial Services Centres (IFSC) will have to file a declaration in Form 60 and should not have any tax liabilities in India.
The Finance Ministry has amended Income Tax Rules exempting non-residents opening a bank account from the requirement of submitting PAN.
Gujarat International Finance Tec-City (GIFT)-IFSC is being promoted as a tax-neutral enclave for the financial sector.
Nangia Andersen LLP Partner - Financial Services, Sunil Gidwani, said this relaxation would make it easy for foreign companies, NRIs and other non-residents to open a bank account with an IFSC bank.
"It will boost the liability/deposits side as well as the retail business segment of a bank in IFSC," Mr. Gidwani said.
