What is Section 115A of Income Tax Act?
Section – 115A : Tax on dividends, royalty and technical service fees in the case of foreign companies. (C) the amount of income-tax with which it would have been chargeable had its total income been reduced by the amount of income by way of royalty and fees for technical services.
What is the TDS rate on foreign remittance?
TDS Rates FY 2021-22 (AY 2022-23) for Non-residents
| Section | For Payment of | TDS Rate |
|---|---|---|
| 195 | Other Payments to Foreign Company | |
| (a) LTCG referred to in Section 112(1)(c)(iii) | 10% | |
| (b) LTCG referred to in Section 112A | 10% | |
| (c) STCG under Section 111A | 15% |
What is Income Tax Act 2013?
AN ACT to confirm temporary taxation orders; to repeal certain spent Acts and provisions of Acts about income tax; to amend the Income Tax Act 1970 and the Income Tax Act 1989; and for connected purposes. The short title of this Act is the Income Tax Act 2013.
What is Section 44DA?
Section 44DA provides the procedure for computing income of a non-resident, including a foreign company, by way of royalty or fee for technical services, in case the right, property or contract giving rise to such income are effectively connected with the permanent establishment of the said non-resident.
What is Section 112 of Income Tax Act?
Section 112 of the Income Tax Act Under Section 112 of Income Tax Act, an assesses is required to pay a tax at the rate of 20% or 10% after and before indexation respectively on the capital gained by him on long term capital assets defined under Section 2 (29A) of the IT Act, 1961.
What is TCS on remittance?
Learn everything about tax collected at source (TCS) on foreign remittances. Tax Collected at Source (TCS) is a form of income tax procured by the seller of certain goods from the buyer.
What is section 195 in income tax?
Section 195 of the Income Tax Act, 1961, covers TDS deductions on transactions/payments of Non-Resident Indians. Any entity (resident or non-resident) who pays any amount other than salary to a non-resident has to deduct tax. It focuses on tax rates and deductions on daily business transactions with a non-resident.
How many sections are there in Income Tax Act?
298 sections
The Income Tax Act of 1961 is a comprehensive statute that sets the rules and regulations that govern taxation in India. The Income Tax Act contains a total of 23 chapters and 298 sections according to the official website of the Income Tax Department of India.
What is the charging section of income tax?
Section 4 of the Income-Tax Act, 1961 (the Act), is the basic charging section under which income-tax is chargeable on the total income of every person. The word “income” is defined under section 2(24) of the Act.
What is Section 44d?
Section 44AD is a presumptive taxation scheme that was introduced by Income Tax Law in order to ease the tax burden on small taxpayers or assessees. Individuals who come under the provisions of this scheme need not maintain or show books of account, nor are they required to get an audit performed on the same.
What is Section 111 A?
Section 111A is applicable in case of STCG arising on transfer of equity shares or units of equity oriented mutual-funds (*) or units of business trust, which are transferred on or after 1-10-2004 through a recognised stock exchange and such transaction is liable to securities transaction tax (STT).
What is difference between 112 and 112A?
No tax on gains from Mutual Funds. If Section 112 is applicable than Section 112A does not imply. Shares listed in the recognized Stock Exchange in the International Financial Service Center (IFSC) as Securities Transaction Tax (STT) are not charged on the transfer of such securities.
What does section 115A of the Income Tax Act mean?
Section 115A (1) of Income Tax Act Where the total income of— (a) a non-resident (not being a company) or of a foreign company, includes any income by way of— (i) dividends other than dividends referred to in section 115-O; or [Strikethrough words shall be omitted w.e.f. 01.04.2021 by the Finance Act 2020]
What are the tax provisions of IT Act 1961?
Section 115A of IT Act 1961-2020 provides for tax on dividends, royalty and technical service fees in the case of foreign companies. Recently, we have discussed in detail section 113 (Tax in the case of block assessment of search cases) of IT Act 1961. Today, we learn the provisions of section 115A of Income-tax Act 1961.
What happens if there is no DTAA in 115A?
The rate prescibed under Sec.206AA becomes redundant in case tax is applicable under Sec.115A, that too, if there is no DTAA. In case, there is DTAA and rate is lower than 20% and the non-resident is not PAN card holder, the provision of Sec.206AA shall still apply.
What does section 195 of the Income Tax Act 1961 say?
Section 195 of the Income Tax Act, 1961 states that: The income earned by non-residents in the form of royalties, technical fees etc. is subjected to TDS by the person who is responsible to make such payment to the non-resident Assessee. The section doesn’t mention any rate at which the TDS is to be done by the person liable to make the payment.