Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    AMENDMENTS IN THE CUSTOMS ACT, 1962
    NewsBills
    EXPLANATORY MEMORANDUM TO THE FINANCE BILL, 2022
    NewsBills
    Promoting Voluntary Tax Compliance and Reducing Litigation
    NewsBills
    Definition of the term “slump sale”:
    NewsBills
    Reduction of Goodwill from block of assets to be considered as ‘transfer’
    NewsBills
    Income-tax authorities for the purposes of section 133A of the Act
    NewsBills
    Amendment in the provisions of section 119 of Income-tax Act
    NewsBills
    Amendment in the provisions of section 263 of the Act
    NewsBills
    Amendment to sub-section (1A) of section 35
    NewsBills
    Consequential Amendments
    NewsBills
    Clarifying that application will be allowed only when its actually paid
    NewsBills
    Voluntary Contributions for the renovation and repair of temples, mosques, gurudwaras, churches etc ...
    NewsBills
    Taxation of certain income of the trusts or institutions under both the regimes at special rate
    NewsBills
    Providing clarity on taxation in certain circumstances
    NewsBills
    The provisions of section 115TD to apply to any trust or institution under the first regime.
    NewsBills
    Bringing consistency in the provisions relating to payment to specified person
    NewsBills
    Bringing consistency in the provisions of two exemption the regimes
    NewsBills
    Reference to the Principal Commissioner or Commissioner (PCIT/CIT) for the cancellation of registrat...
    NewsBills
    Penalty for passing on unreasonable benefits to trustee or specified persons
    NewsBills
    Amendment in the provisions of section 179 of the Act
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    AMENDMENTS IN THE CUSTOMS ACT, 1962
    Show AI Summary
    Assignment of functions to customs officers affirmed, with limits, concurrent powers, revised advance ruling rules, and data protection.
    The Finance Bill expressly authorises the Board or the Principal Commissioner/Commissioner to assign functions to officers as proper officers, to impose conditions or limitations (including by territory or goods), and to allow concurrent exercise of powers. Section 3 includes DRI, Audit and Preventive formations within customs officers. Amendments also enable rules imposing additional importer obligations to counter undervaluation, revise advance ruling fees, withdrawal and validity, confirm sole jurisdiction of the original officer for reassessment after inquiries, and criminalise unlawful publication of import/export declaration data.
    NewsBills
    EXPLANATORY MEMORANDUM TO THE FINANCE BILL, 2022
    Show AI Summary
    Customs duty definitions clarify types of cess and additional duties and state amendments take effect upon enactment.
    The memorandum defines principal customs charge types - Basic Customs Duty, Agriculture Infrastructure and Development Cess, Road and Infrastructure Cess, Health Cess, and Social Welfare Surcharge - links each to existing statutory provisions, notes clause numbers in square brackets refer to Bill clauses, and states amendments in the Finance Bill, 2022, take effect on the date of enactment unless otherwise specified.
    NewsBills
    Promoting Voluntary Tax Compliance and Reducing Litigation
    Show AI Summary
    Updated return scheme: voluntary disclosure with staged additional tax and required proof of payment for compliance.
    A voluntary updated return regime is proposed by inserting section 139(8A) permitting any person to furnish a prescribed updated return within twenty four months from the end of the relevant assessment year, subject to exclusions where it reduces tax or where specified enforcement actions or proceedings exist. The updated return must be accompanied by proof of payment of tax, interest, fee and an additional tax computed as a staged percentage of tax and interest payable; computation rules, credit adjustments and interest calculations are detailed in newly proposed section 140B, and related consequential amendments are proposed.
    NewsBills
    Definition of the term “slump sale”:
    Show AI Summary
    Slump sale definition amended to replace 'sales' with 'transfer', clarifying scope of transfers under tax law.
    The statutory definition of slump sale is amended to substitute the word "sales" with "transfer", clarifying that a slump sale means the transfer of one or more undertakings for a lump sum consideration without values being assigned to individual assets and liabilities, and the amendment is given retrospective effect to apply to the specified assessment year and subsequent assessment years.
    NewsBills
    Reduction of Goodwill from block of assets to be considered as ‘transfer’
    Show AI Summary
    Goodwill treatment: reduction from block of assets deemed a transfer, triggering capital gains consequences and cost adjustment.
    Goodwill is not a depreciable asset and where purchased its purchase price remains the cost of acquisition for capital gains computation, after reducing any depreciation previously claimed; reduction of goodwill from the block of assets is deemed a transfer for capital gains purposes and the clarificatory amendment applies retrospectively to the relevant assessment year and subsequent years.
    NewsBills
    Income-tax authorities for the purposes of section 133A of the Act
    Show AI Summary
    Income-tax authority definition revised to limit qualifying officers to those specified by the Board, altering entry-and-verification scope.
    The proposed amendment restricts the definition of income-tax authority to officers who are subordinate to the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner as specified by the Board, thereby limiting which subordinate officers may exercise entry and verification powers under the section; the amendment takes effect from 1 April, 2022.
    NewsBills
    Amendment in the provisions of section 119 of Income-tax Act
    Show AI Summary
    Relaxation of late filing fee enables administrative orders to relieve classes facing genuine hardship from mandated fee imposition.
    The amendment expressly adds the statutory late filing fee into the list of provisions for which the Board may, by general or special order, provide relaxation or relief for classes of incomes or cases; this enables the Board to issue orders to exempt or mitigate the fee for persons facing genuine hardships in filing returns on time.
    NewsBills
    Amendment in the provisions of section 263 of the Act
    Show AI Summary
    Revision powers under section 263 expand to permit review of Transfer Pricing Officer orders with mandated implementation timelines.
    Proposed amendments grant senior officers assigned transfer pricing jurisdiction power under section 263 to call for and examine TPO records and to revise TPO orders deemed erroneous and prejudicial to revenue. Section 153 is modified so subsections (3) and (5) apply to TPO orders, a new subsection (5A) obliges the Assessing Officer to modify assessments in conformity with a TPO order within two months of receipt, and related implementation provisions are extended to such orders.
    NewsBills
    Amendment to sub-section (1A) of section 35
    Show AI Summary
    Deduction claimed by donor disallowed where donee fails to file statement of donations; amendment corrects drafting error.
    The amendment corrects sub section (1A) of section 35 to provide that the deduction claimed by the donor for donations to specified research associations, educational institutions or companies shall be disallowed unless the donee files the required statement of donations, aligning the rule with section 80G and taking effect retrospectively from April 1, 2021.
    NewsBills
    Consequential Amendments
    Show AI Summary
    Approval authority for trusts changed to Principal Commissioner or Commissioner, replacing prescribed authority references and procedural filing locus.
    Proposal to substitute references to the prescribed authority with Principal Commissioner or Commissioner in specified sub clauses and the nineteenth proviso of clause (23C) of section 10 to align textual references with the existing filing and approval regime for trust applications under the first regime; the amendment is corrective and consequential to prior 2020 changes.
    NewsBills
    Clarifying that application will be allowed only when its actually paid
    Show AI Summary
    Application of income: amounts by trusts treated as applied only when actually paid, with an anti-duplication rule preventing later claims.
    Explanatory provisions treat sums payable by trusts as application of income in the previous year in which such sums are actually paid, irrespective of when the liability arose under the trust's regular accounting method; a proviso bars treating a sum as applied in a later previous year if it has already been claimed as applied in an earlier year. The amendments apply prospectively to the assessment years following the implementation date.
    NewsBills
    Voluntary Contributions for the renovation and repair of temples, mosques, gurudwaras, churches etc ...
    Show AI Summary
    Voluntary renovation contributions may be treated as corpus if kept separate, used only for the specified purpose and properly invested.
    Trusts or institutions may, at their option, treat voluntary contributions for renovation or repair of notified religious places as part of the corpus, subject to conditions: application only for the specified purpose, no onward donations, separate identification, and investment in forms and modes specified under subsection (5) of section 11; violation of any condition renders the sum deemed income of the year in which the breach occurs. Parallel explanatory provisions are proposed for clause (23C) of section 10. Amendments are proposed retrospective to 1 April 2021.
    NewsBills
    Taxation of certain income of the trusts or institutions under both the regimes at special rate
    Show AI Summary
    Special-rate taxation of trust income under new provision: specified breach income taxed separately and no deductions allowed under the rule.
    Proposed amendments subject defined categories of trust or institution income to a special rate by treating only the part of income improperly applied, invested, accumulated or attributed as taxable specified income; disallow deductions or set-offs against such specified income; deem unutilised accumulated sums to be taxable in the last year of accumulation; and define specified income to include excessive accumulations, deemed income under accumulation rules, income rendered non-exempt for impermissible investments or benefit transfers, and income attributable to beneficiaries.
    NewsBills
    Providing clarity on taxation in certain circumstances
    Show AI Summary
    Deductible trust expenditure allowed when exemption denied, subject to prescribed conditions and exclusive tax treatment.
    Proposed amendments allow deduction of revenue (non capital) expenditure for the objects of a trust or institution when exemption is denied for specified non compliances, subject to conditions: expenditure must not be from corpus as at the last day of the preceding financial year, not from any loan or borrowing, not involve depreciation for an asset whose acquisition was treated as application of income earlier, and not be a contribution or donation. Section 40 and 40A provisions apply mutatis mutandis to determine such expenditure, and no other deduction, allowance or set off shall be permitted for that expenditure.
    NewsBills
    The provisions of section 115TD to apply to any trust or institution under the first regime.
    Show AI Summary
    Exit tax on trusts extended to first regime entities, covering conversions, mergers and asset transfers under the amended provisions.
    The Finance Bill proposes to extend Chapter XII-EB's exit tax provisions to trusts and institutions under the first regime by making Sections 115TD, 115TE and 115TF applicable to them, thereby subjecting conversions to non charitable status, mergers with non charitable or dissimilar charitable entities, and failures to transfer assets to a levy on accreted income; the amendment is effective from the commencement of the specified fiscal year and applies to subsequent assessment years.
    NewsBills
    Bringing consistency in the provisions relating to payment to specified person
    Show AI Summary
    Payment to specified person: income applied for their benefit deemed their income, anti benefit rules extended to first regime trusts.
    A proviso to clause (23C) of section 10 deems any income or property of a first regime trust applied for the benefit of a person in section 13(3) to be that person's income in the year of application; sections 13(2), (4) and (6) are made applicable to first regime trusts, aligning anti benefit and attribution rules across regimes.
    NewsBills
    Bringing consistency in the provisions of two exemption the regimes
    Show AI Summary
    Accumulation provisions alignment: consistent tax treatment for accumulated charitable income with prescribed conditions and deemed income triggers.
    The measure harmonises accumulation rules between the two exemption regimes by requiring a prescribed statement to the Assessing Officer, investment or deposit of accumulated funds in specified modes, and timely filing; it provides that accumulated income meeting these conditions is excluded from total income but will be deemed income of the last previous year of the accumulation period if misapplied, ceases to be invested as required, is not utilised within the stated period, or is credited or paid to another exempt trust or institution.
    NewsBills
    Reference to the Principal Commissioner or Commissioner (PCIT/CIT) for the cancellation of registrat...
    Show AI Summary
    Cancellation of charitable registration: Principal Commissioner empowered to inquire and cancel approvals within a prescribed decision period.
    Amendments empower the Principal Commissioner or Commissioner to call for documents, inquire into and, after hearing, cancel or refuse to cancel registrations or approvals of trusts, institutions and similar entities on finding one or more specified violations (including misuse of income, non incidental business income without separate books, non genuine activities, preferential religious benefit, or final non compliance with other laws). Orders must be forwarded to the Assessing Officer and the entity, and a six month statutory deadline governs decision making from the quarter end in which the first notice is issued.
    NewsBills
    Penalty for passing on unreasonable benefits to trustee or specified persons
    Show AI Summary
    Penalty for passing on unreasonable benefits: trusts face penalties equal to the benefit for first offences and greater penalties for repeat breaches.
    The proposal inserts section 271AAE to penalise trusts or institutions that apply income for the benefit of trustees or specified persons: the Assessing Officer may impose a penalty equal to the aggregate amount so applied where the violation is first detected in a previous year, and a higher penalty where the violation is detected again in a subsequent previous year; this penalty is in addition to any other penalties under Chapter XXI and the amendments take effect for the relevant assessment year following enactment.
    NewsBills
    Amendment in the provisions of section 179 of the Act
    Show AI Summary
    Liability of directors of private company clarified as joint responsibility for tax, fees, interest and penalties if company recovery fails.
    Amendment renames the section title to Liability of directors of private company to reflect that directors are jointly and severally liable where tax cannot be recovered from the company, clarifies that this liability is not conditional on liquidation, and expands the Explanation so that the expression "tax due" expressly includes fees alongside penalty, interest and other sums payable.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Income Tax › Act-Rules › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Income Tax

      Comparison of Section 210 "Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      5 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      Section 210 Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

      Income-tax Act, 2025

      At a Glance

      Two texts of a provision titled "Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer" are presented: (1) Section 210 of the Income-tax Act, 2025 (consolidated/authoritative statutory version) and (2) Clause 210 of the Income Tax Bill, 2025 - Old Version (legislative draft). The provision prescribes special tax treatment and rates for specified funds and Foreign Institutional Investors (FIIs) on income from securities and capital gains. Affected parties: Foreign Institutional Investors, specified funds, and, indirectly, Indian revenue authorities and intermediaries administering tax withholding/compliance. Effective date / decision date: Not stated in the document.

      Background & Scope

      Statutory hooks: The provision is located among "Special provisions relating to non-residents and foreign company." It cross-references sections 173(c), 196, 198, sections 28-61/26-61 (depending on text), section 72(6), Chapter VIII and section 93(1)(a)/(e), Schedule VI, and section 2(h) of the Securities Contracts (Regulation) Act, 1956. Definitions provided in the text: "Foreign Institutional Investor" (to be specified by Central Government notification), "permanent establishment" (as in s. 173(c)), "securities" (as in s. 2(h) of the SCRA, 1956), and "specified fund" (meaning assigned in Schedule VI [Note 1]). The provision divides income into specified categories (income in respect of securities; short-term and long-term capital gains of different types) and prescribes specific tax rates for each category; remaining total income is taxed at rates "in force" or as "income-tax chargeable" (wording differs between texts). The provision also contains rules on applicability to specified funds (attributable to units held by non-residents), carve-outs for investment divisions of offshore banking units, denial/allowance of deductions, non-application of s.72(6), and definitional clauses.

      Statutory Provision Mode

      Text & Scope

      The provision applies to an assessee that is a "specified fund" or "Foreign Institutional Investor" and prescribes that the aggregate tax payable is computed by applying fixed rates to specific categories of income listed in a table. The table entries are: (1) income in respect of securities (other than units under s.208) - 20% (FII) / 10% (specified fund); (2) short-term capital gains (other than those under s.196) from transfer of such securities - 30%; (3) short-term capital gains under s.196 - 20%; (4) long-term capital gains (not under s.198) from such transfers - 12.5%; (5) long-term capital gains under s.198 exceeding Rs.125,000 - 12.5%; (6) total income as reduced by items 1-5 - taxed at rates in force / income-tax chargeable (textual variance between documents). The section prescribes computation limits for specified funds (attributable to units held by non-residents), special application to investment divisions of offshore banking units fulfilling Schedule VI criteria, denial of certain deductions where gross total income consists only of category (1), transitional treatment of gross total income for deduction computations, and exclusion of s.72(6) for specified capital gain computations. Definitions for key terms are set out in the section.

      Interpretation

      The text manifests an intent to subject FIIs and specified funds to specific, segregated tax treatment for securities-related income and capital gains, isolating such income categories and applying fixed rates rather than ordinary rates. The provision requires segregating income categories to compute tax and prescribes that when income consists only of securities income, many routine deductions are not available. The requirement that specified funds limit application to income attributable to units held by non-residents indicates intent to tax only the non-resident-linked share of a specified fund's income under this special regime.

      Exceptions/Provisos

      Notable carve-outs and conditions in the text: (a) For specified funds, application is limited to income attributable to units held by non-residents (calculation method to be prescribed). (b) If a specified fund is an investment division of an offshore banking unit that meets Schedule VI criteria, the section applies to the income attributable to that investment division (calculation as prescribed). (c) Where gross total income consists solely of securities income (Table Sl. No.1), deductions under listed sections/chapters are disallowed. (d) Where gross total income includes any of the Table Sl. No.1-5 incomes, the gross total income must be reduced by such amounts and deductions under Chapter VIII allowed as if the reduced gross total income were the gross total income. (e) Section 72(6) shall not apply to computation of capital gains in Sl. No.2-5. These provisos are explicit in the texts provided.

      Illustrations

      • Example 1: An FII earns dividend/interest (income in respect of securities) of X and short-term capital gains (not under s.196) of Y. Tax on X will be computed at 20%; tax on Y at 30%; any remaining income will be taxed at rates in force (or as the act prescribes). (Consistent with text; numerical figures are illustrative only.)
      • Example 2: A specified fund has gross total income consisting only of securities income; it will be denied deductions u/ss 28-58 (or 26-61 depending on text) and Chapter VIII as specified. (Consistent with text.)
      • Example 3: A specified fund's offshore banking unit investment division that meets Schedule VI criteria will have the provision apply only to income attributable to that division as prescribed. (Consistent with text.)

      Interplay

      The provision cross-refers to multiple sections and Schedule VI; it modifies the usual interaction between taxable income categories and deductibility by excluding certain deductions where income is only securities income and by adjusting gross total income for deduction calculations where specified categories are present. It also excludes s.72(6) for capital gain computation for the identified categories. References to definitions in other statutes (Securities Contracts (Regulation) Act) mean that the interpretation of "securities" depends on that Act. The document does not specify the detailed manner of calculating attributable income for specified funds - it states "as may be prescribed" or "as prescribed," indicating reliance on subordinate rules; those rules are Not stated in the document.

      Differences between the Two Texts and Practical Impact

      • Wording and formatting: The Bill (Clause 210Old Version) and the Section 210 text are substantively similar in structure and rates. Differences are mainly textual/corrective (e.g., phrasing "shall be the aggregate of the amounts mentioned in column C thereof" vs. "shall be the aggregate of income-tax computed at the rate specified in the column C applied on the corresponding income specified in column B").
        • Practical impact: No substantive change in tax incidence; the statutory version clarifies computation method by explicit reference to applying the rate to corresponding income.
      • Denial of deductions - cross-references differ: The Bill refers to denial of deductions under "sections 26 to 61 or section 93(1)(a) or (e) or under Chapter VIII;" the Section 210 text refers to "sections 28 to 58, 60 and to 61 or section 93(1)(a) or (e) or under Chapter VIII."
        • Practical impact: The statutory text's citation differs in range; this is potentially substantive if it includes/excludes particular sections. The document does not explain rationale for the change. Which precise sections are intended and whether any substantive deduction scope changed is Not stated in the document.
      • Offshore banking unit carve-out description: The Bill describes the condition as two-part (is investment division of an offshore banking unit as specified in Schedule VI (Table: Sl. No. 1) and fulfils the conditions referred to in Schedule VI (Note 1)). The statutory Section 210 phrases it as application where the specified fund is an investment division of an offshore banking unit and then refers to clause (g)(ii) of Note 1 of the Table in Schedule VI as a Category-I portfolio investor under SEBI (FPI) Regulations, 2019; calculation to be prescribed.
        • Practical impact: The statutory text specifically ties the carve-out to the SEBI FPI Regulations and to a category reference, potentially narrowing or clarifying the class of offshore banking divisions covered. The document does not state the policy reason or whether the scope widened or narrowed numerically.
      • Final line on taxation of remaining income: The Bill's Table Sl. No.6 says "Income-tax chargeable on such income." The statutory version says "Rates in force."
        • Practical impact: The statutory wording "Rates in force" may signal that the residual income is taxed under the general rates applicable to the assessee, while the Bill wording is equivalent but less explicit. No change to substantive outcome is evident from the document.
      • Definitions: Both texts define key terms similarly; in one the phrase is "means an investor so specified" and in the other "means such investor as specified in a notification."
        • Practical impact: Minor drafting difference without clear substantive impact in the documents provided.

      Practical Implications

      • Segregation and computation: Assessing FIIs and specified funds must segregate income into specified categories and apply prescribed fixed rates to those categories. Records must support classification of income as "income in respect of securities," short-term or long-term capital gains, and whether such gains fall u/ss 196/198. (The precise calculation methods for attribution and exclusions are Not stated in the document.)
      • Deduction denial: Where gross total income consists only of securities income, many deductions are disallowed; where mixed, taxpayers must reduce gross total income by the specified incomes to compute allowable deductions-this requires robust internal accounting to separate securities income from other income. The exact list of disallowed sections varies slightly between texts and the statute should be followed.
      • Specified fund attribution: Taxation of a specified fund under this section only applies to income attributable to units held by non-residents (other than a PE). The method of attribution is to be prescribed; absent the rules in the document, practical compliance remains uncertain. Not stated in the document: the prescribed method and timing for attribution.
      • Offshore banking unit division: Investment divisions meeting Schedule VI/SEBI criteria are addressed specifically; such divisions will need to confirm whether they meet the referred criteria to determine applicability. Not stated in the document: procedural proof/evidence to demonstrate eligibility under Schedule VI/SEBI.
      • Capital gains computation: Section 72(6) (relating to set-off of losses in certain situations) is excluded for the listed capital gains categories, affecting the ability to carry forward or set off certain losses in these computations. Tax practitioners must note this exclusion when advising on capital gain computations for FIIs/specified funds.

      Key Takeaways

      • The provision prescribes fixed tax rates on specified securities income and capital gains for FIIs and specified funds, with residual income taxed at general rates.
      • Specified funds are taxed under this section only to the extent of income attributable to units held by non-residents; calculation method to be prescribed (Not stated in the document).
      • Certain deductions are disallowed where income consists solely of securities income; where mixed, adjustments to gross total income are required before permitting Chapter VIII deductions.
      • Section 72(6) does not apply for computing the identified capital gains categories.
      • Textual differences between the Bill and the statutory section are primarily drafting clarifications and specific references (e.g., SEBI FPI Regulations) that refine scope but do not materially alter the rate structure in the documents provided.
      • Several operational details (method for calculating attributable income, procedural/compliance steps for offshore investment divisions, and precise list of disallowed deduction sections where wording differs) are Not stated in the document and depend on prescribed rules or subordinate instruments.

      Full Text:

      Section 210 Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

      Topics

      ActsIncome Tax
      Next ➔