Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Non-resident derivative income exemption depends on eligible IFSC counterparties and absence of a permanent establishment link. Income of a non-resident from non-deliverable forward contracts, offshore derivative instruments or over-the-counter derivatives, and income distributed on such instruments, is exempt under clause (4E) of section 10 only if the contract or instrument is entered into with an eligible offshore banking unit or Foreign Portfolio Investor in an International Financial Services Centre, and not through or on behalf of the non-resident's permanent establishment in India. The offshore banking unit or Foreign Portfolio Investor must ensure compliance with the permanent establishment condition. The rule also defines the key expressions used for this exemption framework.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Non-resident derivative income exemption depends on eligible IFSC counterparties and absence of a permanent establishment link.
Income of a non-resident from non-deliverable forward contracts, offshore derivative instruments or over-the-counter derivatives, and income distributed on such instruments, is exempt under clause (4E) of section 10 only if the contract or instrument is entered into with an eligible offshore banking unit or Foreign Portfolio Investor in an International Financial Services Centre, and not through or on behalf of the non-resident's permanent establishment in India. The offshore banking unit or Foreign Portfolio Investor must ensure compliance with the permanent establishment condition. The rule also defines the key expressions used for this exemption framework.
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