DT - Non Resident Taxation Flashcards
Resident - Basic Conditions
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
OR or NOR - Additional Conditions
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
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
Stays in India at least 120 days during PY
AND
365 days or more during 4 preceding PY
Determination of POEM
Active Business Outside India (ABOI) Test
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
Non application of POEM
Co having turnover of Rs 50 Crore or less in a FY
44B
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
44BBA
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
44BB
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)
44BBB
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)
Head office Expenses - Section 44C
Actual Head office expense allocated to PE in India
OR
5% of Adjusted Total Income of PE in India
whichever is LOWER
NRI Chapter XII-A
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
Section 115 A - Interest
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%
Section 115A - Royalty & FTS
Taxable @ 10% if he has no PE in India
Section 155AB- Income from Units of UTI/ Mutual Funds to Overseas Financial Organisation
Income & LTCG Taxable @ 10%
Section 115AC - Income from Bonds or GDR of Indian Co purchased in Foreign currency by NR
Interest/Dividend & LTCG Taxable @ 10%
Section 115AD - FII
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
Section 115BBA - Income of NR Sportsmen , Sports Association & Entertainer
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
