Update: Lessor tax holiday in India

The latest budget announcement in India includes a tax holiday for capital gains for aircraft leasing companies along with tax exemptions for aircraft lease rentals paid to foreign lessors operating out of the International Financial Services Centre in GIFT City. It is hoped that the move will lead to the starting-up of Indian based lessors. The holiday will also help bring down operating costs of domestic airlines by 9-10 per cent in tax terms. The country has a poor record when it comes to aircraft leasing considerations. Only time will tell if the country is turning a corner for real.