New Delhi, Feb. 1 -- The Union budget has doubled the tax holiday for companies operating from the International Financial Services Centre (IFSC) in Gujarat and reduced the tax they have to pay after the break, bringing relief and tax certainty to entities operating from the global financial hub.

Entities in IFSC can now enjoy tax-free operations for a total of 20 years against the previous 10, and pay 15% tax on profits after the tax holiday, compared to previous rates of 25-35%.

The move immediately assuages concerns of IFSC entities worried about tax sops running out too soon, making their operations uncompetitive as compared with other tax-efficient IFSCs like Singapore or Dubai.

The extension of the tax holiday comes at an opportu...