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DT - NR Taxation - 3 Pages Summary
DT - NR Taxation - 3 Pages Summary
• Type of Income
1. Interest Income 2. LTCG 3. Other incomes
Interest from foreign exchange assets# LTCG from foreign exchange assets#
• Tax Rates @ 20% • Tax Rates @ 10% • Tax Rates
@ Normal Tax Rate
• Method • Method • Method
- Dedn u/s 28to 44C, S. 57 not available - Chapter VI-A Dedn. Not Available - Normal Provisions
- Chapter VI-A are not available. - Indexation Benefit Not Available
# Foreign Exchange Any of the following assets acquired / purchased in foreign exchange (FOREX).
Assets i. Shares of Indian company (Public/ Private) ii. Debenture of Indian Public Co.
iii. Deposits with an Indian Public company iv. Securities of Central Govt.
v. Any other asset as may be notified by CG
Section 115F LTCG on FOREX asset shall be exempt if net consideration is utilized for acquiring other FOREX
Exemption on LTCG assets with 6 Months from the date of transfer.
Exempt Amount = LTCG x Cost of New Asset / Net Consideration
Section 115G ROI not required to be filed if :
Exemption from Filing a) Total Income include only Interest Income & LTCG.
of ROI b) TDS already deducted.
Section 115-I The above provisions are optional means Assessee can pay Normal tax on LTCG &
Interest income instead of 10% & 20%.
1. Sec 115A Interest, Royalty, Fees for Technical Service recd by NR/Foreign Company
• Interest
Type of Income Payable to From Rate TDS
A. Interest NR / F. Company Infrastructure Debt Fund [Sec 10(47)] @5% 194LB 5%
(Asked in Nov 19 - New Syllabus)
B. Interest on Loan NR / F. Company Indian Co. / Business Trust - Loan in Foreign @5% 194LC 5%
Currency, RDB, Long Term Bond
C. Interest on FII / QFI* Investment made in RDB of Indian Company or @5% 194LD 5%
Investment Government Securities
D. Interest on Unit NR Unit holder Business Trust (REIT / InVIT) @5% 194LBA 5%
E. Interest on NR / F. Company Government or Indian Concern (Nov 18 Q7) @20% Sec 195
F. Currency Loan (Other than A,B,C,D)
*FII - Foreign Institutional Investor, QFI - Qualified Foreign Investor, RDB- Rupee Denominated Bond
DT(Final) Last Day Revision Notes - By Sanjay Zanwar, 9765974365, Telegram Channel @DT_LDR 1
• Royalty / Fee for technical service (FTS)
Particular If there is no PE in India --> Sec 115A If there is PE in India --> Sec 44DA
Taxable @ 10% Normal Tax Rate
TDS Dend u/s Sec 195 Sec 195
Return Filing if income The assessee is not required to furnish Return u/s 139(1) if -
u/s 115A a. The Total income consists of only Interest / Dividend Income referred above and
b. the TDS has been deducted from such income.
Benefit not available - Deduction under chapter VI-A - Indexation Benefit (in case CG)
for Sec 115A - Basic Exemption (Slab) - Deduction u/s 28 to 44C / Sec 57
Note - Deduction u/c VI-A available against Royalty & FTS referred in Sec 115A
3. Sec 115AD Capital Gain & Interest on Security of FII (Max Surcharge is 15% on CG)
Income --> Income recd by Foreign Institutional Investors (FII) on securities (other than units of UTI/MF).
Taxable at the rate LTCG STCG u/s 111A STCG Other Interest
@ 10% @ 15% @ 30% @ 20%
Sec 195 Sec 195 Sec 195 194LD 5%
Note - If Sec 112A apply then income tax @10% on income exceeding 1 lakh
Benefit not available - Deduction under chapter VI-A - Indexation Benefit (in case CG)
- Basic Exemption (Slab) - Deduction u/s 28 to 44C / Sec 57
DT(Final) Last Day Revision Notes - By Sanjay Zanwar, 9765974365, Telegram Channel @DT_LDR 2
Part C - Bonds & GDR
Sec 115AC LTCG and Interest from --> Bonds and GDR
Income Income received by NR / Foreign Company on 'Bonds of Indian Company'
Income received by NR / Foreign Company on 'GDR acquired in Foreign Currency'
Tax Rate Interest @10% TDS Dedn u/s 196C
LTCG @10% TDS Dedn u/s 196C
Benefit not available - Deduction under chapter VI-A - Indexation Benefit (in case CG)
- Basic Exemption (Slab) - Deduction u/s 28 to 44C / Sec 57
Return Filing The assessee is not required to furnish Return u/s 139(1) if -
a. The Total income consists of only Interest / Dividend Income referred above and
b. the TDS has been deducted from such income.
Transfer of Bonds / Not considered as transfer for calculation of capital gain [Sec 47 (viiia)]
GDR If transfer made outside India by one NR to another NR shall not be treated as transfer
Option to declare lower Not Available Not Available Lower profits may be claimed u/s 44BB & u/s 44BBB
profit but assessee
- maintains Books of account u/s 44AA &
- gets them audited u/s 44 AB.
* Sec 44BB Business of providing services & facilities for or supplying P&M on hire, used or to be used in the
exploration & exploitation of Mineral oils, Petroleum and Natural gas
DT(Final) Last Day Revision Notes - By Sanjay Zanwar, 9765974365, Telegram Channel @DT_LDR 3