Withholding on nonresident mutual fund income: payers must deduct tax at credit or payment unless foreign remittance exemption applies. The substituted provision imposes a withholding obligation on payers of income attributable to units of specified Mutual Funds or the Unit Trust of India to non-residents, requiring deduction of income-tax at the time of credit or payment, whichever is earlier. An exemption prevents deduction where UTI units held by a non-resident Indian or non-resident HUF were acquired from UTI out of a Non resident (External) Account or by remittance of foreign currency in accordance with the foreign exchange statute. The section also supplies definitions and treats credits to suspense or similar accounts as credit to the payee for timing purposes.
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.
Withholding on nonresident mutual fund income: payers must deduct tax at credit or payment unless foreign remittance exemption applies.
The substituted provision imposes a withholding obligation on payers of income attributable to units of specified Mutual Funds or the Unit Trust of India to non-residents, requiring deduction of income-tax at the time of credit or payment, whichever is earlier. An exemption prevents deduction where UTI units held by a non-resident Indian or non-resident HUF were acquired from UTI out of a Non resident (External) Account or by remittance of foreign currency in accordance with the foreign exchange statute. The section also supplies definitions and treats credits to suspense or similar accounts as credit to the payee for timing purposes.
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