Section 10(4G) of the Income Tax Act, 1961 (“the IT Act”), provides an exemption for income earned by a non-resident from its portfolio, subject to certain conditions. The Finance Act of 2023 has expanded the scope of this exemption to include any income received by a non-resident from a specified activity carried out by a specified person.
In this regard, the CBDT vide Notification No. 04/2023 dated January 4, 2023, has now specified the activity of investing in a financial product by a non-resident, facilitated by a capital market intermediary within a Unit of an International Financial Services Centre (IFSC).
The Notification can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/CBDT-Notification-No.4-2024.pdf