Section 218
Section 218: tax on business income of Offshore Banking Units or IFSC units
Section 218 sets a flat 15% tax rate on a specific category of business income - income of the nature referred to in section 147(3) - typically earned by Offshore Banking Units or units in an International Financial Services Centre.
The rate
Where the total income of an assessee includes income of the nature referred to in section 147(3), the aggregate income-tax payable is computed at:
| Income | Rate of income-tax payable |
|---|---|
| Income referred to in section 147(3) | 15% |
| Total income as reduced by that income | Rates in force |
Frequently asked questions
What rate applies to income covered by Section 218?
15%, on income of the nature referred to in section 147(3), with the rest of total income taxed at the rates otherwise in force.
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