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Question

What are the tax benefits offered to companies operating in GIFT city?

A Exemption from income tax for the first 10 years of operation Correct Answer Incorrect Answer
B Exemption from goods and services tax (GST) for the first 10 years of operation Correct Answer Incorrect Answer
C Exemption from capital gains tax for the first 10 years of operation Correct Answer Incorrect Answer
D Exemption from all taxes for the first 5 years of operation Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

Companies operating in GIFT city are eligible for certain tax benefits under the Special Economic Zones Act, 2005. One of the benefits is exemption from income tax for the first 10 years of operation. This is applicable to both domestic and foreign companies that operate within the special economic zone. However, companies are still required to pay other taxes such as customs duties and indirect taxes. Therefore, option A is correct.

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