India’s Central Board of Direct Taxes eliminated Tax Deducted at Source on lease rentals paid to eligible aircraft leasing units in GIFT City, immediately improving liquidity for domestic operators. Under Notifications 74/2026 and 75/2026 issued 3 July 2026, airlines no longer deduct TDS on standard or supplemental lease payments, provided the lessor opts for the concessional 15% tax regime under Section 147 of the Income Tax Act, 2025 and declares 20 consecutive tax years via Form No. 1(N). The exemption applies across 20 tax years, aligning with Union Budget 2026–27’s extension of the IFSC tax holiday from 10 to 20 years until 2047. Operators must furnish particulars of non-deducted payments in their TDS statements, while lessors submit an annual verified statement confirming eligibility.