Several fund houses in Gujarat International Finance Tec-City (GIFT City) that faced tax-related hurdles are seeing their cases being resolved after representations to the tax authorities, according to tax and legal experts, who said the issues largely stemmed from technical glitches in processing rather than deliberate denial of tax benefits.
Fund management entities (FMEs) had filed the requisite Form 10CCF to claim deductions under Section 80LA of the Income Tax Act, but the system was not recognising these submissions while processing returns, leading to the denial of tax holidays, said a senior tax expert.
“These are not conscious denials. They are technical issues,” the consultant said, adding that the tax office had assured that the cases would be resolved.
