FAQ

Frequently Asked Questions: GIFT City IFSC (2026)

Section 1: The Basics (For Newcomers)

1. What is GIFT City? It is India’s first International Financial Services Centre (IFSC), a “deemed foreign territory” where businesses can transact in foreign currencies with global regulatory standards.
2. Where is it located? Strategically located between Ahmedabad and Gandhinagar in Gujarat, India.
3. Is GIFT City a Tax Haven? Not a “haven” in the traditional sense, but a “special tax zone” offering a 20-year 100% tax holiday to incentivise global financial activities.
4. Who regulates GIFT City? The IFSCA (International Financial Services Centres Authority) is the unified regulator for banking, capital markets, insurance, and pensions.
5. What is the difference between the SEZ and DTA in GIFT City? The SEZ (Special Economic Zone) is the offshore IFSC area, while the DTA (Domestic Tariff Area) is the mainland Indian portion of the city.
6. Can I use Indian Rupees (INR) in the IFSC? For business transactions, the primary currencies are USD, EUR, GBP, etc. INR is used for administrative expenses within India.

Section 2: Banking & NRI Interests

7. Can an NRI open a bank account in GIFT City? Yes, NRIs can open USD-denominated Global Savings Accounts at International Banking Units (IBUs).
8. Is the interest earned in a GIFT City account taxable? No. Interest income for non-residents is 100% exempt from Indian income tax.
9. Do I need a PAN card to open an account? Yes, or you may submit Form 60 if you do not have taxable income in mainland India.
10. Is there currency risk? No. Since the accounts are in USD or other foreign currencies, you are shielded from Rupee (INR) depreciation.
11. Can I repatriate funds easily? Yes. Funds in GIFT City are freely repatriable; you can move them to any international bank without local “exchange control” hurdles.
12. Are deposits insured? GIFT City banks follow international Basel III norms, though they are not covered by India’s domestic DICGC (which covers INR accounts).

Section 3: Trading & GIFT Nifty (The “Traders’ Corner”)

13. What is GIFT Nifty? It is the new name for the SGX Nifty, now traded on the NSE IX exchange within GIFT City.
14. What are the trading hours? It trades for roughly 21 hours a day, covering the gap between the US and Asian market sessions.
15. Is there Securities Transaction Tax (STT)? No. One of the biggest draws for traders is the zero STT and zero Stamp Duty.
16. How is Capital Gains Tax handled for foreign traders? Non-residents are exempt from tax on capital gains arising from trading derivatives on GIFT City exchanges.
17. Can I trade Nasdaq or S&P500 futures from here? Yes, certain brokers allow access to global markets through the IFSC framework.
18. Is algorithmic trading allowed? Yes, GIFT City exchanges offer world-class co-location facilities for high-frequency and algo-traders.

Section 4: Business Setup & Corporate Benefits

19. What is the 20-year tax holiday? Units can claim 100% tax exemption on profits for any 10 consecutive years out of a 15-year block (extended to 20 years in 2026).
20. Can a foreign company set up a branch? Yes, foreign firms can set up a “Branch Office” or a subsidiary in the IFSC with minimal red tape.
21. What is a Family Investment Fund (FIF)? A vehicle for ultra-high-net-worth families to manage their global wealth from a tax-efficient Indian base.
22. What is the minimum corpus for an FIF? Usually $10 million over a period of three years.
23. Are there GST benefits? Yes. Services provided to or by units in the IFSC are generally exempt from GST.
24. Can I list my startup directly in GIFT City? Yes, the 2026 rules allow for direct listing on GIFT City exchanges without an initial listing in mainland India.

Section 5: Legal & Compliance

25. Is Indian Law applicable in GIFT City? Yes, but with specific IFSC-related amendments. Furthermore, many contracts are governed by English Common Law principles.
26. How are disputes resolved? Through the Singapore International Arbitration Centre (SIAC) model or the dedicated IFSC Commercial Courts.
27. What is an Ancillary Service Provider? Firms like CAs, Law Firms, and Custodians that provide support services to IFSC units.
28. Does GIFT City follow IFRS? Yes, accounting is primarily done in USD following International Financial Reporting Standards.
29. What are the “Substance” requirements? Firms must have a physical presence (office) and qualified staff in GIFT City to qualify for tax benefits.
30. Is Cybersecurity mandatory for firms? Yes. The IFSCA mandates strict cybersecurity frameworks, especially for fintech and banking units.

Section 6: Real Estate & Lifestyle

31. Can an NRI buy property in GIFT City? Yes, in the residential zones of the city.
32. Is there a “Walk-to-Work” culture? Yes, the city is designed as a smart city where residential, commercial, and social zones are interconnected.
33. Are there international schools? Yes, several global educational brands and universities have opened campuses in the city.
34. What about social life and “Prohibition”? GIFT City has specific exemptions allowing regulated social clubs to serve alcohol to residents and visitors within the IFSC area.
35. How is the connectivity? It is connected to Ahmedabad and Gandhinagar via a dedicated Metro link and a 4-lane highway.
36. What is the future outlook for 2030? GIFT City is projected to host over 500,000 jobs and become the primary bridge for $1 trillion of inbound/outbound Indian capital.