Taxation of Capital Gains for Non-Residents Introduction Capital gains tax applies to income from the transfer of a capital asset. For non-residents, specific provisions govern aspects like period of holding, cost of acquisition, foreign currency fluctuations, and computation methods. Taxability of Capital Gains Capital gains from an asset in India: Always taxable in India underSection… Read More »
Taxation of Royalty and Fees for Technical Services (FTS) for Non-Residents The taxability of royalty or FTS income for a non-resident depends on factors such as the place of accrual, existence of a Permanent Establishment (PE) in India, the date of the agreement, and Double Taxation Avoidance Agreements (DTAAs). For agreements entered into on or… Read More »
Taxation of Interest Income of Non-Residents A non-resident is taxed in India on interest income that accrues, arises, or is deemed to accrue or arise in India. Interest received in India is also taxable. While interest is generally taxed at normal rates, certain categories of interest income are subject to concessional tax rates on a… Read More »
Taxation of Dividend Income of Non-Residents Dividend income received by a non-resident from an Indian company is always taxable in India. However, dividends from a foreign company are taxable in India only if received in India. Unlike regular income, dividends for non-residents are taxed on a gross basis at concessional rates. Taxability of Dividend Income… Read More »
TAXATION OF NON-RESIDENT PERSONS Introduction A non-resident is taxed in India only on income that is received, deemed received, accrued, or deemed accrued in India. Taxability is also influenced by Double Taxation Avoidance Agreements (DTAAs) between India and other countries. Determination of Non-Resident Status A person is classified as a non-resident under Section 6 of the Income-tax… Read More »
Pass Through Income AY 2026-27 Introduction The Income-tax Act accords pass-through status to Category I & II Alternative Investment Funds (AIFs), Securitisation Trusts, and Business Trusts. Under this mechanism, tax is levied at the investor level rather than the entity level, ensuring fiscal neutrality and preventing double taxation. Entities Eligible for Pass-Through Status (a) Category I & II… Read More »
Tonnage taxation AY 2026-27 Tonnage Tax Scheme Introduction The Tonnage Tax Scheme (‘TTS’) provides Indian shipping companies operating qualifying ships an option to compute their income on a presumptive basis under Chapter XII-G (Sections 115V to 115VZC) of the Income-tax Act. This scheme allows qualifying companies to compute income on a presumptive basis based on the net… Read More »
Winnings from Online Games AY 2026-27 Winnings From Online Games Introduction Income from online games is taxable under Section 115BBJ of the Income-tax Act, 1961, at a flat rate of 30%. The Finance Act, 2023, introduced a new scheme for taxing such winnings, effective from the assessment year 2024-25. Tax is deducted at source (TDS) under Section 194BA at… Read More »
Taxation of Virtual Digital Asset (VDA) Ay 2026-27 Introduction Virtual Digital Assets (VDAs) include crypto assets, Non-Fungible Tokens (NFTs), and any other digital assets, excluding Indian currency, CBDCs, Foreign currency, and notified digital assets. Income from the transfer of VDAs is computed without any deduction except for the cost of acquisition and taxed at a… Read More »
Taxation of Life Insurance Policies AY 2026-27 Taxation of Life Insurance Policies Introduction The taxability of life insurance policies depends on the type of policy and the premium paid. Generally, any sum received under a life insurance policy, excluding a keyman insurance policy, is exempt under Section 10(10D), provided the premium does not exceed a certain… Read More »