Non-residents to get full income tax exemption on profits from OTC derivative contracts traded in IFSC due to this rule change

No income tax: Incomes arising out of non-resident's income on Over-the-Counter (OTC) derivatives will be fully exempt from Income Tax under Section 10 (4E) provided they are routed through overseas banking units or FPIs. ​Yeeshu Sehgal says: “It means Non-residents can now engage in transactions through FPIs operating in IFSCs & income earned from these derivative transactions will continue to be exempt from income tax."