GIFT City Rule Changes: What's New for Investors (2026)
By Anup Vatyani, AMFI-registered Mutual Fund Distributor (ARN 106715)
Last reviewed 9 October 2026
The short answer. GIFT City's rules change often. This page lists the changes that matter to investors, newest first, each with what it means for you. Last reviewed 9 October 2026.
Latest IFSCA circulars and other rule changes
· Government of Mauritius
Mauritius Cabinet approved ratification of the 2024 Protocol to the India–Mauritius tax treaty, which adds a principal purpose test. It takes effect only after both countries complete their procedures.
What it means for you: Relevant if you invest in India through a Mauritius-based fund. GIFT City funds are an onshore alternative. GIFT City vs Singapore, Dubai and Mauritius
· IFSCA
Circular on governance of schemes: a scheme's fiduciary may not also act as its administrator, valuer, auditor or lender. Immediate for new schemes; existing schemes to comply by 30 September 2026.
What it means for you: More independent oversight of the GIFT City funds you invest in.
· IFSCA
Key staff of fund management entities in core fund management roles must obtain a specified certification by 30 September 2026.
What it means for you: Higher minimum standards for the people managing GIFT City funds.
· IFSCA (report)
Cumulative debt listings on GIFT City exchanges reached USD 70.31 billion; USD 49.20 billion outstanding.
What it means for you: A deeper bond market in GIFT City. GIFT City bonds
· HMRC (UK)
The UK replaced the remittance basis with the 4-year foreign income and gains (FIG) regime for new arrivals.
What it means for you: UK-resident NRIs: changes how foreign gains, including GIFT City funds, may be taxed. UK NRIs
· Finance Act, 2025 (India)
TCS threshold on LRS remittances (other than education and medical) raised from ₹7 lakh to ₹10 lakh a year.
What it means for you: Residents can invest up to ₹10 lakh a year abroad, including GIFT City, before TCS applies. TCS calculator
· Finance Act, 2025 (India)
Section 10(10D) amended: proceeds of life policies issued by an IFSC insurance office are exempt without the premium-limit condition.
What it means for you: NRIs buying dollar life insurance from GIFT City get the same treatment as for other foreign jurisdictions. GIFT City insurance
· IFSCA
IFSCA (Fund Management) Regulations, 2025 notified, replacing the 2022 rules. PMS minimum cut from USD 150,000 to USD 75,000; minimum corpus for schemes cut from USD 5 million to USD 3 million.
What it means for you: A lower entry point for GIFT City PMS, and easier for fund houses to launch schemes. GIFT City PMS
· RBI
Residents may open foreign currency accounts in GIFT IFSC under LRS and use them for financial products and services in IFSC, and for transactions in other foreign jurisdictions.
What it means for you: More flexibility for residents investing in GIFT City. Redemption and repatriation
· SEBI
FPIs based in GIFT IFSC may take contributions from NRIs, OCIs and resident Indian individuals, subject to conditions such as disclosing each contributor's PAN.
What it means for you: Made it easier for fund houses to run inbound GIFT City funds for NRIs. FPIs in GIFT City
A summary for information only. Read the regulator's full text before acting, and see the disclaimer.
Common questions
What are the latest GIFT City rules for investors?
The most recent changes on this page are IFSCA's 2026 governance and certification circulars for fund managers and the 2025 Fund Management Regulations, which cut the PMS minimum to USD 75,000. This page was last reviewed on 9 October 2026.
What is the TCS threshold for investing in GIFT City in 2026?
₹10 lakh a year across all LRS remittances other than education and medical, since 1 April 2025. Above that, 20% TCS applies to investment remittances; it is credited against your income tax.
How often is this page updated?
It is reviewed every month. Each entry is dated and links to the relevant guide. Check the regulator's own website for the full text of any rule.
Official sources
Rules change. Check the current position with the authority that sets it.
- IFSCA — International Financial Services Centres Authority — The regulator for all financial services in GIFT IFSC.
- IFSCA — Press release on the Fund Management Regulations, 2025 — The rules for GIFT City funds, PMS and AIFs, notified 19 February 2025.
- RBI — FAQs on the Liberalised Remittance Scheme — The annual limit and permitted purposes for resident Indians.
- SEBI — Securities and Exchange Board of India — The regulator for domestic Indian mutual funds.
- Income Tax Department, Government of India — The Income-tax Act, including Section 10(4D), and TCS rules.
- GOV.UK — The 4-year foreign income and gains regime — The regime that replaced the remittance basis on 6 April 2025.
Have a question about how this works?
Anup Vatyani explains GIFT City fund structures and the investment process in plain English. Educational conversation only, not personalised advice.
Talk to AnupThis page is educational and is not investment, tax or legal advice. Figures and rules are as understood at the date shown and can change; check the official sources and the scheme's offer documents. Investments are subject to market risks; read all scheme-related documents carefully.