GIFT IFSC · International Investing

GIFT City — India's Global Financial Hub

Name: ArthmArg Financial Services
Address: 2A, LGF, Rishab Tower, Community Centre, Karkardooma, Delhi - 110092, Karkardooma, Delhi, 110092, IN
Telephone: +91 92899 38087
Price range: Free consultation

Invest in international securities, USD-denominated funds and offshore structures from India — with special tax treatment through the Gujarat International Finance Tec-City (GIFT) IFSC.

What is GIFT City?

GIFT City (Gujarat International Finance Tec-City) in Gandhinagar, Gujarat is India's first operational Smart City and International Financial Services Centre (IFSC). The GIFT IFSC operates under special regulations that allow foreign-currency transactions, making it effectively an "offshore financial zone" on Indian soil.

Since 2022, SEBI and the IFSCA (International Financial Services Centres Authority) have progressively opened GIFT IFSC to resident Indians and NRIs for investing in international products that were previously only accessible from abroad.

Why GIFT City matters for investors Before GIFT City, Indian residents were limited to the RBI's Liberalised Remittance Scheme (LRS) — $250,000/year — for foreign investments, with a 20% TCS on remittances above ₹7 lakh. GIFT City structures bypass LRS for certain products, allowing larger and more tax-efficient international exposure.

What can you invest in via GIFT City?

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International mutual funds Funds domiciled in GIFT IFSC invest in global equities, bonds and ETFs — in USD. Returns in USD; repatriation is unrestricted within the IFSC framework.

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Foreign equity & ETFs Buy shares listed on NSE IFSC — which includes FAANG stocks and global ETFs — in USD without using LRS or paying 20% TCS.

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USD fixed deposits GIFT IFSC banks (HDFC, ICICI, SBI branches) offer USD FDs at globally competitive rates — typically 4-5% p.a. — with DICGC-equivalent IFSCA protection.

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Alternative Investment Funds (AIF) GIFT IFSC Category III AIFs — hedge fund structures, long-short, global macro — accessible to HNIs with ₹1 crore minimum.

GIFT City vs LRS — key differences

Feature	LRS (Overseas direct)	GIFT City IFSC
Annual limit	$250,000/year	No LRS limit (own framework)
TCS on remittance	20% on amount above ₹7L	Nil (not treated as overseas remittance)
Currency	USD / GBP / etc.	Primarily USD within IFSC
Regulation	SEBI + FEMA	IFSCA (lighter, offshore-style)
Tax on capital gains	India taxes under FEMA; DTAA applies	Concessional: 10% LTCG; STT exemption; no dividend tax for 10 years in IFSC
Who can invest	Resident Indians + NRIs	Resident Indians + NRIs

GIFT City tax benefits

10-year income tax holiday for IFSC units (Section 80LA)
Concessional 10% tax on capital gains from IFSC-listed securities for non-corporate investors
No STT (Securities Transaction Tax) on GIFT IFSC trades
No GST on financial services within IFSC
Dividend income from IFSC companies: exempt for 10 years from commencement
NRIs: interest on IFSC bank deposits fully exempt (Section 10(4D))

Still evolving GIFT City regulations change frequently — IFSCA releases new circulars every few months. The investment products available, account opening process, and tax treatment are in active development. We stay current and guide clients through the latest rules.

Want to explore GIFT City investing for your portfolio?

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Information based on IFSCA and SEBI guidelines as of 2025. GIFT City regulations are updated frequently — verify current rules before investing. This page is for general awareness only. Last updated: June 2025.