Aviation and shipping finance
Lessors, financiers and the life of a lease; Vessels financed and leased from GIFT IFSC.
Aircraft Leasing
Aircraft lessors have made GIFT IFSC their Indian base. IFSCA reports 454 aircraft and ship assets leased as at June 2026.
Under section 147(3)(d) of the Income-tax Act, 2025, income from transferring a leased aircraft can be eligible if the unit began operations by 31 March 2030. Timing matters.
A global lessor establishing in GIFT City
A lessor wants to lease aircraft to Indian and regional airlines from India.
An IFSC leasing unit under the IFSCA framework.
The steps
- Register the lessor.
- Set up lease documentation and DGCA processes.
- Plan customs on import and export.
Points that need care
- Commencement by 31 March 2030 for transfer income to qualify.
An Indian airline leasing from a GIFT lessor
An airline wants to lease from an IFSC lessor.
Lease from the IFSC unit.
The steps
- Agree lease terms and security.
- Handle DGCA registration and the Cape Town filings.
Points that need care
- Withholding on aircraft lease rentals is not covered by Notification 80/2026; check the position for the payment.
Engine and parts leasing
A lessor wants to lease engines or parts rather than whole aircraft.
Leasing within the framework's permitted assets.
The steps
- Confirm the asset is covered.
- Document the lease.
Repossession and redelivery
A lessor needs to recover an aircraft at the end of a lease or on default.
Contractual and Cape Town remedies, with DGCA de-registration.
The steps
- Review the lease's default provisions.
- Act on DGCA de-registration and export.
Points that need care
- Speed matters; prepare documents in advance.
Ship Leasing & Maritime Finance
Ship leasing from GIFT IFSC runs under IFSCA's framework. Since 1 April 2026, CBDT Notification 75/2026 removes withholding tax on ship lease rent paid to an IFSC unit that has furnished Form No. 1(N).
That makes the economics of GIFT ship leasing noticeably cleaner for lessees.
A shipping group leasing vessels from GIFT City
A group wants to lease ships to Indian and foreign operators.
An IFSC ship leasing unit.
The steps
- Register the unit.
- Obtain Form No. 1(N) so lessees stop TDS.
- Plan flag and registration.
Points that need care
- Relief applies only for the 20 tax years the unit chooses.
A financier funding a ship purchase
A bank or lender wants to finance vessels through GIFT IFSC.
Financing through an IBU or finance company.
The steps
- Document the loan and ship mortgage.
- Align with the flag state's registry.
Points that need care
- Flag-state law governs the mortgage.
Sale of a leased vessel
A lessor wants to sell a ship at the end of a lease.
Transfer income under section 147(3)(d), if the unit commenced by 31 March 2030.
The steps
- Confirm the unit's commencement date.
- Plan the sale and export.
Talk to the firm about your plans.
A short note on what you are setting up is enough for a first conversation. No confidential information is needed at this stage.
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