Tax Ready Reckoner

Section 10(4G) of the Income Tax Act, 1961 in India provides an exemption for certain income earned by a non-resident from a portfolio of securities, financial products, or funds managed or administered by a portfolio manager in an International Financial Services Centre (IFSC), such as GIFT City, Gujarat. This provision was introduced to promote investment […]

Section 10(4H) of the Income Tax Act, 1961 in India provides an exemption for certain income earned by a non-resident or a unit of an International Financial Services Centre (IFSC) from the transfer of ship or aircraft on a recognized stock exchange located in an IFSC, where the consideration is paid or payable in foreign

Section 10(5) of the Income Tax Act, 1961, provides an exemption for Leave Travel Concession (LTC) or Leave Travel Allowance (LTA) received by an employee from their employer. This exemption covers the cost of travel incurred by the employee and their family when they go on leave. However, the exemption is limited and subject to certain conditions. Conditions for Exemption Under Section 10(5) Eligible

Section 10(6) of the Income Tax Act, 1961 provides tax exemptions for certain types of remuneration received by individuals who are not citizens of India. Specifically, Section 10(6)(ii) deals with exemptions for remuneration received by officials of foreign embassies, high commissions, and other diplomatic missions in India. Key Provisions of Section 10(6)(ii) The exemption under

Section 10(6A) of the Income Tax Act, 1961, provides a tax exemption to foreign companies on income earned in India in the form of royalty or fees for technical services (FTS), provided certain conditions are met. This exemption applies when the Indian government or an Indian concern pays tax on behalf of the foreign company under a tax agreement. Key

Section 10(6B) of the Income Tax Act, 1961, provides a tax exemption to non-residents (including foreign companies) on income earned from the Government of India or an Indian concern under an approved agreement. This exemption applies when the Indian government or an Indian concern pays the tax on behalf of the non-resident/foreign company. Key Features of Section 10(6B) Who Can Claim? Non-residents

Section 10(6BB) of the Income Tax Act, 1961 provides a tax exemption to foreign governments or foreign enterprises on income earned from leasing aircraft or aircraft engines to Indian companies. This exemption applies when the Indian lessee (company) pays the tax on behalf of the foreign entity under an approved agreement. Key Features of Section 10(6BB) Eligible Entities: Government of a

Overview of Section 10(6C) Section 10(6C) provides a tax exemption to foreign companies on income received as: Royalty(payments for use of patents, copyrights, trademarks, etc.) Fees for Technical Services (FTS)(technical know-how, consultancy, etc.) when the Indian payer (Government or Indian concern) bears the tax liability under an approved agreement. Key Conditions Applicable Period: Agreements made between 1st June 2002 and 31st March

Section 10(6D) provides a tax exemption to non-residents (other than foreign companies) on income received as: Royalty(payments for use of patents, copyrights, trademarks etc.) Fees for Technical Services (FTS)(consultancy, technical assistance etc.) when the Indian payer (Government or Indian concern) bears the tax liability under an approved agreement. Key Conditions Applicable Period: Agreements made between 1st June 2002 and 31st March 2024

Understanding Section 10(7) Section 10(7) provides a complete tax exemption for: Allowances Perquisites paid outside Indiaby the Indian Government to its citizen employees for services rendered outside India. Key Features ✔ Applicable to: Indian government employees (including diplomats, military personnel, scientists etc.) ✔ Location Requirement: Services must be rendered outside India ✔ Payment Condition: Allowances/perquisites must be paid outside India ✔ Exemption Scope: 100% exemption on such foreign-paid