Non-residents or foreign companies wishing to open a bank account within International Financial Services Centres (IFSC) are required to submit a declaration in Form 60 and must not have any outstanding tax obligations in India.
The Finance Ministry has introduced amendments to the Income Tax Rules, providing an exemption from the PAN (Permanent Account Number) requirement for non-residents when opening a bank account.
Gujarat International Finance Tec-City (GIFT)-IFSC is actively promoted as a tax-neutral hub for the financial sector. Sunil Gidwani, Partner – Financial Services at Nangia Andersen LLP, noted that this relaxation will simplify the process for foreign companies, NRIs, and other non-residents to establish bank accounts with IFSC banks.
He added, “It will enhance both the liability/deposits side and the retail business segment of banks within IFSC.”