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
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