Remittance of net reinsurance premia after deduction of brokerage-Eligibility for deduction under Section 80-O of the Income-tax Act 1961

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uction under Section 80-O of the Income-tax Act 1961. 1. Under the provisions of section 80-O of the Income-tax Act, 1961 an Indian Company or a non-corporate assessee, who is resident in India, is entitled to a deduction of fifty per cent of the income received by way of royalty, commission, fees, etc. from a foreign Government or foreign enterprise for the use outside India of any patent, inv....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... out of the gross premia collected from Indian insurance companies and remit the net premia overseas, or they could simply remit the gross premia and get back their brokerage in the form of remittance through banking channels. 3. The Reserve Bank of India have expressed the view that since the principle underlying both the transactions is the same, there is no difference between the two modes o....