TaxTMI 
TaxTMI 
Tax on dividends, royalty and technical service fees in the case of foreign companies
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....re debt fund referred to in clause (47) of section 10; or] 24[(iiaa) interest of the nature and extent referred to in section 194LC; or] 26[(iiab) interest of the nature and extent referred to in section 194LD; or] 30[(iiac) distributed income being interest referred to in sub-section (2) of section 194LBA; ] (iii) income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10 or of the Unit Trust of India, the income-tax payable shall be aggregate of- (A) the amount of income-tax calculated on the amount of income by way of dividends 36[other than dividends referred to in section 115-O], if any, included in the total income, at the rate of twenty per cent ; 40[P....
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.... 44DA]received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy, then, subject to the provisions of sub-sections (1A) and (2), the income-tax payable shall be the aggregate of,- 29[(A) the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of 33[ 41[twenty] per cent.] per cent; (B) the a....
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....e Government of India, the agreement is in accordance with that policy] occurring in the said clause had been omitted : Provided that such book is on a subject, the books on which are permitted, according to the Import Trade Control Policy of the Government of India for the period commencing from the 1st day of April, 1977, and ending with the 31st day of March, 1978, to be imported into India under an Open General Licence : 14[Provided further that such computer software is permitted according to the Import Trade Control Policy of the Government of India for the time being in force to be imported into India under an Open General Licence.] 15[Explanation 1].-In this sub-section, "Open General Licence" means an Open General Lice....
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....be reduced by the amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee. 35[Provided that nothing contained in this sub-section shall apply to a deduction allowed to a Unit of an International Financial Services Centre under section 80LA.] (5) It shall not be necessary for an assessee referred to in sub-section (1) to furnish under sub-section (1) of section 139 a return of his or its income if- (a) his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in 38[clause (a) or clause (b)] of sub-section (1); and 39[(b) the tax deductible at sou....
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...., at the rate of thirty per cent ; and" 6. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 7. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 8. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 9. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 10. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978. 11. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 12. Substituted for "and approved by the Central Government" by the Finance Act, 1992, w.e.f. 1-6-1992. 13. Substituted for "approved by the Central Government or where the agreement relates to a matter" by the Finance Act, 1994, w.e.f. 1-4-1995. 14. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 15. Renumbered b....
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....f June, 2005]; 7[(AA) the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of ten per cent if such royalty is received in pursuance of an agreement made on or after the 1st day of June, 2005;] (B) the amount of income-tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of thirty per cent if such fees for technical services are received in pursuance of an agreement made on or before the 31st day of May, 1997 and twenty per cent where such fees for technical services are received in pursuance of an agreement made after the 31st day of May, 1997 8[but before the 1st day of June, 2005] ; and] 9[(BB) the amoun....