Applicability of MAT on Foreign Companies – Section 115JB of Income Tax Act 1961 Under the provision of the Income Tax Act, where the tax payable by the company as per the provision of the IT Act, is less than MAT, the company is liable to pay a minimum income tax equivalent to MAT. Tax … Read more

Section 115bba of Income Tax Act 1961 – Tax on Non Resident Sportsmen or Sports association Income of Non resident Sportsmen Where a non-resident sportsman (including an athlete), who is a foreign citizen derives following income, they shall be taxable at 20%: – Income from participation in India in any game (other than winnings from … Read more

Section 115AD of Income tax act – Tax on Income of Foreign Institutional Investors Who are ‘Foreign Institutional Investor’? A Foreign Institutional investor (FII) , is an investor or an investment fund , which is registered   outside India and invests in Indian financial markets . They can include hedge funds, insurance companies, pension funds and … Read more

Section 115AC of Income tax act – Special Provisions for Computing Tax on Income from Bonds or Global Depository Receipts Under the provisions of the Income Tax Act, the following income would have concessional rate of tax mentioned against them : – Particulars Rate of Tax Interest income of non-resident from following bonds purchased in … Read more

Section 115ab of Income tax act – Taxation of income from units/or Capital gains of such units of offshore fund Income from certain units, or capital gains arising from transfer of such units, by non-resident/foreign company from the following shall be chargeable to tax @ 10% : – Income received by Overseas financial institution (“OFI”) … Read more

Section 115A of Income Tax Act deals with taxation of Income from royalty or fees for technical services (other than those covered u/s 44DA) received by non-resident/foreign company from the following shall be chargeable to tax @ 10% : – Government under an agreement ; Indian concern, in pursuance of agreement  , which is either … Read more

The provisions of “Chapter XII A of Income Tax Act – Special provisions relating to certain incomes of non-residents”contains sections 115C, 115D, 115E, 115F, 115G, 115H and 115-I. These  provisions are applicable to a Non-resident Indian who has certain investment from which he derives : – Certain investment income; and/ or Long term capital gains … Read more

Concessional Rate of 10% Tax Rate on shares of a private company and shares of a company in which the public is not substantially interested- Section 112 of Income Tax Act, 1961 Long-term capital gains, arising tp a non-resident, are taxable at a concessional rate of 10%, provided the following conditions are satisfied: – There … Read more

Section 111A of Income Tax Act 1961 – Short Term Capital Gains Tax in respect of Equity Shares/ Units of an Equity Oriented Fund Where any short-term capital gains arise on transfer of the following assets, such gains would taxable at concessional rate of 15% , provided the following conditions are satisfied: – Capital gain … Read more

Section 48 of Income Tax Act 1961 – Mode of Computation of Capital Gains Mode of computation of capital gains means, the method that should be applied to calculate capital gains. Capital gains are normally calculated, by deducting from the sales consideration, the cost spent by the seller, in acquiring the Capital Asset or making … Read more