TDS on compensation to non-resident shareholders requires withholding, with taxable portion determinable on application to tax authorities. TDS must be deducted on compensation remitted to non-resident shareholders as these amounts are capital receipts liable to capital gains tax; withholding is required under Section 195(1). If the payer believes only part is taxable, an application under Section 195(2) may be made to have the Income-tax Officer determine the taxable portion, and tax is then deducted only on that portion. Calculation guidance for cost of acquisition for shares before and after 1 January 1954 is provided, and companies must furnish required information to Income-tax Officers for determination.
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.
TDS on compensation to non-resident shareholders requires withholding, with taxable portion determinable on application to tax authorities.
TDS must be deducted on compensation remitted to non-resident shareholders as these amounts are capital receipts liable to capital gains tax; withholding is required under Section 195(1). If the payer believes only part is taxable, an application under Section 195(2) may be made to have the Income-tax Officer determine the taxable portion, and tax is then deducted only on that portion. Calculation guidance for cost of acquisition for shares before and after 1 January 1954 is provided, and companies must furnish required information to Income-tax Officers for determination.
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