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General Provisions

Tax Rates (Special)




Special provisions in relation to certain income of non-residents [Sec. 115A to Sec.115AC]

Following table enumerated the provisions relating to sec.115A to 115AC 

Sec. / Particulars

115A(1)(a)

115A(1)(b)

115AB

115AC

Applicable on

Non-resident

Non-resident

Overseas financial organization (Note 2)

Non-resident

Income covered

Interest received from Government or an Indian concern on money given in foreign currency

Royalty or fees for technical services (other than income covered u/s 44DA) received as per agreement entered on or after 1-6-2005 (See Note)

Long-term capital gains arising from the transfer of units of UTI or mutual fund specified u/s 10(23D) purchased in foreign currency

a) Interest on notified foreign currency bonds of Indian / public sector company

 

b) LTCG arising on transfer of such bonds or Global Depository Receipts (GDR)

Special tax rate

20%

10%

10%

10%

Allowability of expenditure u/s 28 to 44C & sec. 57

No

No

Not Applicable

No

Deduction u/ch VIA

Not available

Available

Not available

Not available

Index benefit

Not Applicable

Not Applicable

Not Available

Not Available

Requirement to furnish return #

No

Yes

Yes

No

# If total income consists of such income only and tax has been deducted from such income  

Note:

  • In case, agreement is entered between following dates, royalty income shall be taxable at

Date Range

Rate

Between 1-4-1976 to 31-5-1997

30%

Between 1-6-1997 to 31-5-2005

20%

  • Overseas financial organisation means any fund, institution, association or body, whether incorporated or not, established under the laws of a country outside India, which has entered into an arrangement for investment in India with any public sector bank or public financial institution or a mutual fund specified u/s 10(23D) and such arrangement is approved by the Securities and Exchange Board of India.


Special provisions in relation to certain income of non-residents [Sec. 115ACA to Sec.115BBA]

Following table enumerated the provisions relating to sec.115ACA to 115 BBA

Sec. / Particulars

115ACA

115AD

115 BBA (1)(a)

115 BBA (1)(b)

Applicable on

Resident individual

Foreign Institutional Investor

Non-resident sportsman being foreign citizen

Non-resident sports association

Income covered

Long-term capital gains on transfer of GDR of an Indian company engaged in specified knowledge based industry or service (Note 3)

  • Income on securities (other than unit referred to in sec. 115AB)
     
     
  • STCG or LTCG on transfer of such securities
     

Income by way of:

 
  • participation in India in any game or sport; or
     
  • advertisement; or
     
  • contribution of articles relating to any game or sport in India in newspapers, magazines or journals
     

Any amount guaranteed to be paid or payable to such association for any game or sport played in India

Special tax rate

10%

STCG u/s 111A (i.e. on which STT is levied)

15%

10%

10%

Other STCG
30%
LTCG
10%
Other Income
20%

Allowability of expenditure u/s 28 to 44C & sec. 57

Not Applicable

No

No

No

Deduction u/ch VIA

Not available

Not available

Not available

Not available

Index benefit

Not Available

Not Available

Not Applicable

Not Applicable

Requirement to furnish return #

Yes

Yes

No

No

Others

Assessee must be an employee of such company or its subsidiary

 

Winning from lottery, cross-word puzzles etc. is taxable @ 30% u/s 115BB

Note 3 : Specified knowledge based industry or service means:  
  • information technology software;
  • information technology service;
  • entertainment service;
  • pharmaceutical industry;
  • bio-technology industry; and
  • any other specified industry or service