India has a diversified and rapidly growing financial services sector that provides an impetus to the country’s economic development. The government of India has regularly taken steps to improve the tax and regulatory environment to meet stakeholder expectations. The financial services sector in India includes, inter alia, banks and non-banking finance companies, alternative investment funds (AIFs), infrastructure investment trusts, real estate investment trusts (REITs), mutual funds, securitization trusts and insurance players. India’s focus on and commitment to the financial services sector has also been demonstrated through the launch of its project of creating a world-class financial hub (known as the International Financial Services Centre (IFSC)), which aims to provide a business, tax and regulatory environment that is comparable to other leading international financial centers. Given that any investment/transaction may be incomplete if the relevant tax laws are not taken into account, this article offers an insightful discussion on the prevalent structures in India’s financial services (FS) sector and the direct and indirect tax provisions impacting them.