Tax Ready Reckoner

Section 10(4C) of the Income Tax Act, 1961 in India provides an exemption for interest income earned by a non-resident on specific bonds or debentures issued by certain Indian companies or public sector companies. This provision aims to incentivize foreign investment in designated debt instruments by exempting the interest income from tax in India. Provisions […]

Section 10(4D) of the Income Tax Act, 1961 in India provides an exemption for certain income earned by specified funds on the transfer of capital assets or other income, such as dividends or interest, derived from securities held by the fund. This provision was introduced to facilitate the operations of specified funds, particularly those established

Section 10(4E) of the Income Tax Act, 1961 in India provides an exemption for income earned by a non-resident from the transfer of non-deliverable forward contracts (NDFs) or income from offshore derivative instruments (ODIs) entered into with an offshore banking unit in an International Financial Services Centre (IFSC). This provision, introduced to promote financial activities

Section 10(4F) of the Income Tax Act, 1961 in India provides an exemption for income earned by a non-resident by way of royalty or interest on account of the lease of an aircraft or an aircraft engine to an Indian company or entity engaged in the business of operating aircraft. This provision was introduced to

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