Section 47 of Income tax act 1961 – Transactions not regarded as transfer Section Section 47 of the Income Tax Act, 1961 Type of business Non-resident Capital gains arise when there is a “transfer” of a Capital Asset effected during the previous year. If there is no transfer of a capital asset, no income is … Read more

Short Term and Long Term Capital Asset For the purpose of, computing capital gains, a Capital Asset is divided into two categories : – Short term Capital Asset Long term Capital Asset The importance of classifying capital assets into these two categories lies in the fact that  long term capital gains are generally chargeable to … Read more

No Exemption u/s 10 on Urban Agricultural Land – Explanation 1 to Section 2(1A) While agricultural income is exempt from income-tax under Section 10(1) , Explanation 1 to Section 2(1A) , clarifies that capital gains arising from urban agricultural land would not be treated as agricultural income, and would this   be chargeable to tax under … Read more

Section 45 of Income Tax Act provides that any profits or gains, which arise from the transfer of a capital asset , which is effected in the previous year shall be chargeable to income tax under the head “Capital gain”and shall be deemed to be the income of the previous year in which the transfer … Read more

Section 44DA of Income Tax Act – Income by way of Royalties and Fee for technical Services in case of Non Resident Section Section 44DA of Income Tax Act Particulars Royalty and fees for technical services which is effectively connected to the PE of non-resident in India Rate of presumptive income/deduction Income shall be computed … Read more

Section 44C of Income Tax Act – Deduction in respect of Head Office Expenses of Non residents Section Section 44c of Income Tax Act Particulars Deduction for Head office Expenditure. Rate of presumptive income/deduction Deduction would be Lower of 5% of adjusted total income; or Head office expenses as attributable to business or profession of … Read more

Section 44BBB of Income Tax act 1961 – Foreign Companies Engaged in the Business of Civil Construction etc. in certain Turnkey Power Projects Section Section 44BBB of Income Tax Act Particulars Income of a foreign company engaged in the business of civil construction or the business of erection of plant or machinery or testing or … Read more

Special Provision for Computing Profits and Gains of the Business of Operation of Aircraft in the case of Non – Residents – Section 44BBA of Income Tax Act Section Section 44BBA of Income tax act Particulars Income of a non-resident engaged in the business of operation of aircraft shall be computed on presumptive basis. Rate … Read more

Section 44BB of Income Tax Act 1961 – Profits and Gains in connection with the Business of Exploration etc. of Mineral Oils. Section Section 44BB of Income Tax Act Particulars Income of a non-resident engaged in the business of providing services for extraction or production of, mineral oils shall be computed on presumptive basis. Rate … Read more

Section 172 of Income Tax Act 1961 – Assessment and Collection of Tax of Non Resident Engaged in Shipping Business. Applicability – Section 172 of Income tax Act 1961 The provisions of Section 172, apply for the purpose of levy , and recovery of tax in case of shipping business of non-residents, provided the following … Read more