TDS UNDER SECTION 194E,194LB, 194LBA OF INCOME TAX ACT

 TDS U/S 194E,194LB, 194LBA OF INCOME TAX ACT

Section 194E TDS ON PAYMENT TO NON RESIDENT SPORTSMAN OR NON RESIDENT SPORT ASSOCIATIONS

Sec 194E-Non Resident Sportsman 

Sportsman or entertainer being a non resident foreign citizen participate in INDIA in any GAMES or SPORTS/ ADVERTISING/ CONTRIBUTION OF ARTICLES relating to any games or sports IN ANY NEWSPAPER/MAGAZINE OR JOURNAL. And any  income is to be received by the SPORTSMAN that income shall be DEDUCT A TDS @20% ( + surcharge + Health + Education Cess) and SPORTS ASSOCIATION being a non resident is organised a SPORTS OR ANY GAMES IN INDIA then the SPORTS ASSOCIATION received the income that  income shall be liable to pay a TDS RATES @20%( + surcharge + Health + Education Cess). And when tax shall be deducted: - AT THE TIME OF PAYMENT OR CREDITING THE PAYEE WHICHEVER IS EARLIER.

Section 194LB TDS ON INTEREST FROM INFRASTRUCTURE DEBT FUND

Sec 194LB-Infrastructure Debt Fund

NON RESIDENT/ FOREIGN COMPANY  received the interest income from the INSFRASTUTURE BEDT FUND,  then INSFRASTUTURE BEDT FUND to paid a interest income to non resident or foreign company after deduct a TDS of that  income, the Interest income  shall be liable to pay a TDS RATES @5%( + surcharge + Health + Education Cess). And when tax shall be deducted: - AT THE TIME OF PAYMENT OR CREDITING THE PAYEE WHICHEVER IS EARLIER.

Section 194LBA TDS ON CERTAIN INCOME FROM UNITS OF A BUSINESS TRUST

Sec 194LBA-Units of Business Trust

Resident unit holder/ Non Resident unit holder/ Foreign Company unit holder is unit hold of the UNITS OF A BUSINESS TRUST and the UNITS OF A BUSINESS TRUST payment is made to Resident unit holder/ Non Resident unit holder/ Foreign Company unit holder then this income deduct a TDS as per Section 10(23FC)/ Section 10(23FCA), when tax shall be deducted: - AT THE TIME OF PAYMENT OR CREDITING THE PAYEE WHICHEVER IS EARLIER.

PAYEE	Rate of TDS Section 10(23FC)	Rate of TDS Section 10(23FCA)
Payment is made to a RESIDENT UNIT HOLDER	10%	10%
Payment is made to a unit holder being NON RESIDENT	5%	30%+SC+HEC
Payment is made to a unit holder being a FOREIGN COMPANY	5%	40%+SC+HEC

 IF YOU SEE THE MORE DETAILS ABOUT THE NON RESIDENT- SPECIAL TAX RATES THEN CLICK THE BELOW LINK

https://eknowledgeachiever.blogspot.com/2020/08/Section115A-to-Section115AC-of-Incometaxact-SpecialTaxrate.html

Slab Rates of Income Tax Act for the F.Y.-2020-21

Slab Rates of Income Tax Act for the F.Y.2020-21

1. In case of an INDIVIDUAL whether RESIDENT OR NON RESIDENT / HUF/ AOP/BOI/ANY OTHER ARTIFICIAL JURIDICAL PERSON.(OTHER THAN SENIOR CITIZEN /SUPER SENIOR CITIZEN)

                                   For the A.Y 21-22 and F.Y. 20-21

INCOME	TAX RATES
Up to Rs. 2,50,000	NIL
Rs. 2,50,000 to Rs. 5,00,000	5% (T.I. – Rs.2,50,000)
Rs. 5,00,000 to Rs. 10,00,000	Rs.12,500 + 20% (T.I. – Rs.5,00,000)
Rs.10,00,000 and above	Rs. 12,500 + 30% (T.I. – Rs.10,00,000)

2.       In case of SENIOR CITIZEN                    

                               For the A.Y 21-22 and F.Y. 20-21

INCOME	TAX RATES
Up to Rs. 3,00,000	NIL
Rs. 3,00,000 to Rs. 5,00,000	5% (T.I. – Rs.3,00,000)
Rs. 5,00,000 to Rs. 10,00,000	Rs.10,000 + 20% (T.I. – Rs.5,00,000)
Rs.10,00,000 and above	Rs. 10,000 + 30% (T.I. – Rs.10,00,000)

 

3.       In case of SUPER SENIOR CITIZEN

                                 For the A.Y 21-22 and F.Y. 20-21

INCOME	TAX RATES
Up to Rs. 5,00,000	NIL
Rs. 5,00,000 to Rs. 10,00,000	20% (T.I. – Rs.5,00,000)
Rs.10,00,000 and above	Rs. 1,00,000 + 30% (T.I. – Rs.10,00,000)

  

REBATE U/S 87A 

This section 87A is applicable to RESIDENT INDIVIDUAL and condition is the individual or the assessee does not exceed its total income Rs. 5, 00,000.

If the assessee has a total income is exceed Rs.5, 00,000 then tax will be levied as per income tax rules.

Maximum of rebate: - least of the followings

100% of TAX LIABILTY as computed above                           

OR

                          Rs.12, 500

Surcharge slab rate on REBATE U/S 87A:-

Surcharge on tax after rebate u/s 87A

 For the A.Y 21-22 and F.Y. 20-21

INCOME	TAX RATES
T.I <=50Lacs	NIL
Rs. 50Lacs>=< Rs. 1Crore	10% (TAX)
Rs.1Crore>=<Rs.2 Crore	15% (TAX)
Rs.2Crore>=<Rs.5 Crore	25% (TAX)
Rs.5Crore>	37% (TAX)

 

COMPANY:-

        In case of COMPANY then tax rates is:-

For the A.Y 21-22 and F.Y. 20-21

COMPANY	INDIAN COMPANY	OTHER CASE	FOREIGN COMPANY
TAX RATES	25 % ( TOTAL T/O during the P.Y.2017-18 does not exceed Rs. 400 crore)	30%	40%

 

https://eknowledgeachiever.blogspot.com/2020/08/Section115A-to-Section115AC-of-Incometaxact-SpecialTaxrate.html

Section 115A to Section115AC of Income tax act –Special Tax Rate

If you see this section then click to upper link.

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Section 115A to Section115AC of Income tax act –Special Tax Rate

Section 115 A (1)(a) of Income tax act –Special Tax Rate 

Section 115 A(1)(a) 

This section 115 A(1)(a) is applicable on NON RESIDENT and Income covered if the nonresident received a Dividend (other than covered u/s 115-O) or interest received from Infrastructure bonds /govt./Indian concern or the Indian company on money borrowed in foreign currency or interest of the nature referred of the nature to in section 194 LC/194 LD /194 LBA(2) then this income received to be tax in the special rate @5% in this income and other income will be taxed on 20%.   Allow-ability of expenditure under section 28 to section 44 C & section 57 is not applicable and Deduction under chapter VI A is not applicable for this section 115 A(1)(a) exception Deduction u/s 80 LA can be claimed by a UNIT OF AN INTERNATIONAL FINANCIAL SERVICES CENTER, Indexation benefit is not applicable and Requirement to furnish return is not mandatory.

Section 115 A(1)(a)-CHART

Section 115 A(1)(b) of Income tax act-Special Tax Rate

Section 115 A(1)(b)

This section 115 A(1)(a) is applicable on NON RESIDENT and Income covered if the nonresident received a Royalty or fees for technical services ( other than income covered u/s 44 DA) received as per agreement entered with Govt. or Indian company /concern on or after 1-4-1976. *Indian concern means the where the such agreement is with Indian concern, the agreement is approved by the CG. then this income received to be tax in the special rate @10% in this income. Allow-ability of expenditure under section 28 to section 44 C & section 57 is not applicable and Deduction under chapter VI A is applicable for this section 115 A(1)(b), Indexation benefit is not applicable and Requirement to furnish return is required or its applicable.

Section 115 A(1)(b)-CHART

Section 115 AB of Income tax act-Special Tax Rate

Section 115 AB

This section 115 AB is applicable on (OFO)- OVERSEAS FINANCIAL ORGANISATION and Income covered if the (OFO)- OVERSEAS FINANCIAL ORGANISATION is agreement with IN INDIA, Public Sector Bank / Public Financial Institution / Mutual funds u/s 10(23D) is approved by SEBI and purchase FUNDS etc.. from , Public Sector Bank / Public Financial Institution / Mutual funds u/s 10(23D) in FOREIGN CURRENCY and then purchase funds likes:- UNITS OF UTI  / MUTUAL FUNDS u/s 10(23D) is sales or transfer the LTCG arising and Special Tax rate @10%, Allow-ability of expenditure under section 28 to section 44 C & section 57 is not applicable and Deduction under chapter VI A is not applicable for this section 115 AB, Indexation benefit is not applicable and Requirement to furnish return is required or its applicable. 

Section 115 AB-CHART

Section 115 AC of Income tax act-Special Tax Rate

Section 115 AC

This section 115 AC is applicable on NON RESIDENT and Income covered if the nonresident received INTEREST on notified Foreign currency bonds of India / Public Sector Company and Dividend ( other then covered u/s 115-O) on GDR, and its listing in recognized stock exchange and the transfer the GDR or bonds then LTCG arising and Chargeable a Special Tax Rate@10%.Allow-ability of expenditure under section 28 to section 44 C & section 57 is not applicable and Deduction under chapter VI A is not applicable for this section 115 AC, Indexation benefit is not applicable and Requirement to furnish return is not required or not mandatory.

Section 115 AC- CHART

https://eknowledgeachiever.blogspot.com/2020/07/poem-place-of-effective-management.html

PLACE OF EFFECTIVE MANAGEMENT-(POEM) INCOME TAX

 IF YOU SEE THIS ABOVE POEM TOPIC THEN CLICK THE LINK AT MENTION ABOVE

PLACE OF EFFECTIVE MANAGEMENT-(POEM) INCOME TAX

Place of effective management-(POEM) INCOME TAX

POEM means in the direct taxation “a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are in substance made".

CIRCULAR 6/2017 dated 24-01-2017:- In this circular 6/2017 the process of determining the POEM of the companies would be primarily based on the fact, the company is engaged in ABOI or not.

 If the company is engaged in ABOI then the POEM should be determined as:-

• Majority meetings of the BOD’s of the company are held in INDIA, Then POEM in OUTSIDE INDIA.

• BOD’s of the company are standing aside and not exercising the power of the management and powers are being exercised by either the holding company or other person’s resident in INDIA, then POEM in INDIA.   

If the company is not engaged in ABOI then the POEM should be determined as:

•  A place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole INDIA then the POEM IS IN INDIA.

•  Place where the decisions being made than the place is in INDIA then the POEM IS IN INDIA.

POEM

*PASSIVE INCOME OF THE COMPANY SHALL BE AGGREGATE OF: - INCOME FROM THE TRANSACTIONS WHERE BOTH THE PURCHASE OR SALE OF GOODS IS FROM ASSOCIATED ENTERPRISES, AND INCOME BYWAYS OF ROYALTY, DIVIDEND, INTEREST OR RENTAL INCOME.

CIRCULAR 25/2017 dated 23-10-2017:- In this circular to clarified related to guidelines for establishing POEM in INDIA, CIRCULAR 6/2017- Determined of POEM were issued 24^th January 2017, and CIRCULAR NO. 8/2017 dated 23^rd February 2017 it has clarified that the POEM Provisions shall not apply to a company having T/O or GROSS RECEIPT OF 50 CRORE OR LESS IN AN F/Y.

it’s simply that if the company having a business is engaged in  India the poem in India otherwise outside India in a similar case in holding and subsidiary company, if one of the holding company its structure and field working its payroll functions, accounting, human resources functions, etc.. and its same function it's subsidiary the company then not to say that its subsidiary company it's standing aside not any power excersing them if the place where decisions are made or where the meeting are held, then the poem is situated in that place.

https://eknowledgeachiever.blogspot.com/2020/08/Income-tax-act-sec-48.html

Income Tax Act First Proviso to Section 48 and Rule 115A 

IF YOU SEE THIS ABOVE SECTION 48 THEN CLINK THE ABOVE LINK.

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Income Tax Act First Proviso to Section 48 and Rule 115A

Income-tax Act, First Proviso to Section 48 and Rule 115A

Capital gain on transfer of shares/debentures by non-resident

Applicable on NON RESIDENT ASSESSEE (NOT BEING AN ASSESSEE COVERED U/S 115AC AND 115AD)

If the non-resident assesses purchase its shares and debentures of an Indian company by utilizing the foreign currency and then after-sale this shares and debentures of an Indian company acquired through reinvestment, whether the assets may be long term capital gain or short term capital gain, and this Income-tax Act, First Proviso to Section 48 and Rule 115A is not applicable to UNIT OF UTI & MUTUAL FUNDS, and the above proviso, not any BENEFIT OF INDEXATION shall be available. The methods of computation are mandatory and not optional.

First proviso sec 48 & rule 115 A

Procedure: -   Capital gain arising on transfer of above assets shall be computed as under:-

 

PROCEDURE 

The average exchange rate is an average of the telegraphic transfer buying rate & telegraphic transfer selling rate.

 

Special tax rate for long term capital gain in some cases SECTION 112(1)(c)

This above section shall be applicable to a non-resident or a foreign company and some condition should be satisfied are:-

Long term capital gain arising on transfer of capital assets BEING UNLISTED SECURITES / SHARES of a company in which public are substantially interested and without giving effect on the FIRST PROVISO TO SECTION 48- Capital gain in foreign currency  and SECOND PROVISO TO SECTION 48- Index benefit.

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