DT - Non Resident Taxation

Question 1

Resident - Basic Conditions

Answer 1

Stay in India for 182 days or more
OR
Stay in India for 60 days or more in current PY & 365 days or more during 4 preceding PY

Question 2

OR or NOR - Additional Conditions

Answer 2

Resident of India for at least 2 PY out of 10 preceding PY
AND
Stay in India for at least 730 days during 7 preceding PY

Question 3

Special condition for Indian Citizen or Person of Indian Origin who came to India for visit & have income from Indian Source exceeds Rs 15 Lacs in PY shall be RNOR

Answer 3

Stays in India at least 120 days during PY
AND
365 days or more during 4 preceding PY

Question 4

Determination of POEM
Active Business Outside India (ABOI) Test

Answer 4

All conditions fulfilled
1. Passive income is not more than 50% of its total Income
2. Less than 50% of the Total Assets are situated in India
3. Less than 50% of the Total Employees are situated in India & Resident in India
4.Payroll Expenses incurred on Indian Employees is the

Question 5

Non application of POEM

Answer 5

Co having turnover of Rs 50 Crore or less in a FY

Question 6

44B

Answer 6

Regular Shipping Business
Appl to : NR
Income : 7.5 % of Amt charged for carriage of passengers, livestock, mail or goods from any port in India
& Amt received in India for same from any port outside India

Question 7

44BBA

Answer 7

Aircraft Business
Appl to : NR
Income : 5% of Amt charged for carriage of passengers, livestock, mail or goods from any place in India
& Amt received in India for same from any place outside India

Question 8

44BB

Answer 8

Plant & Machinery for hire for prospecting, extraction or production of Mineral oils
Appl to : NR
Income : 10% of Gross Receipts (Receipts earned in India or received in India)

Question 9

44BBB

Answer 9

Civil Construction or erection of P&M relating to Turnkey power projects
Appl to : Foreign Co
Income : 10% of Gross Receipts (Receipts earned in India or received in India)

Question 10

Head office Expenses - Section 44C

Answer 10

Actual Head office expense allocated to PE in India
OR
5% of Adjusted Total Income of PE in India
whichever is LOWER

Question 11

NRI Chapter XII-A

Answer 11

NRI who derives Investment Income & LTCG from Forex Asset
Investment Income - 20% (Gross Basis without deduction)
LTCG - 10% (Without Indexation)
Other - Normal Rate
Exemption if consideration invested in other Forex Asset within 6 month from date of Transfer : LTCG * Investment in New Asset/ Net Sale Consideration

Question 12

Section 115 A - Interest

Answer 12

Interest Taxable @ 5%
1.Infrastructure Debt fund - TDS u/s 194LB
2.By Business Trust to NR unitholders - TDS u/s 194LBA
3.From Indian co or Business trust on money borrowed in Foreign Currency under loan agreement by issue of long term debenture or Rupee denominated bonds - TDS u/s 194LC
4.Received by FII or QFI on Rupee Denominated bonds , Govt Securities & Municipal Debt Securities- TDS u/s 194LD

Interest Taxable @ 20%
from govt or Indian concern on money borrowed by them in foreign currency

Dividend from Indian Co & Income from units of UTI/Mutual Funds are taxable @ 20%

Question 13

Section 115A - Royalty & FTS

Answer 13

Taxable @ 10% if he has no PE in India

Question 14

Section 155AB- Income from Units of UTI/ Mutual Funds to Overseas Financial Organisation

Answer 14

Income & LTCG Taxable @ 10%

Question 15

Section 115AC - Income from Bonds or GDR of Indian Co purchased in Foreign currency by NR

Answer 15

Interest/Dividend & LTCG Taxable @ 10%

Question 16

Section 115AD - FII

Answer 16

Interest on Securities(other than 115A) - 20%
Dividend - 20%
STCG u/s 111A - 15%
STCG on other securities - 30%
LTCG u/s 112A - upto 1 lakh - exempt, above that 10%
LTCG on other securities - 10%
Other Income - Normal provisions

Question 17

Section 115BBA - Income of NR Sportsmen , Sports Association & Entertainer

Answer 17

Taxable @ 20% (without any deduction) - TDS u/s 194E
1. Income from participation in any game
2. Advt in India
3. Contribution of Articles in Newspaper, Magazines etc.
4. Amt guaranteed to be paid to such association
5. Income from performance in India

Balance Income normal provisions