Income-tax Act, 2025

Tax on dividends, royalty and fees for technical service in case of foreign companies - Section 207

E.Special provisions relating to non-residents and foreign companies

Tax on dividends, royalty and fees for technical service in case of foreign companies.

207. (1) The income-tax payable on the total income of a non-resident (not being a company) or of a foreign company, which includes any income specified in the column B of the Table below, 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.

TABLE

Sl. No.IncomeRate of Income- tax payable

ABC

1.Dividend [other than dividends specified against serial number 2].20%

2.Dividend received from a unit in an International Financial Services Centre.10%

3.Interest received from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency not being interest referred to against serial numbers 4 and 5.20%

4.Interest received from an infrastructure debt fund referred to in Schedule VII (Table: Sl. No. 46).5%

5.Interest of the nature and extent referred to in section 393(2) (Table: Sl. Nos. 2, 3 and 4).Rates specified in section 393(2) (Table: Sl. Nos. 2, 3 and 4).

6.Distributed income being interest referred to in section 393(2) (Table: Sl. No. 6).Rate specified in section 393(2) (Table: Sl. No. 6).

7.Income received in respect of units, purchased in foreign currency, of a Mutual Fund specified in Schedule VII (Table: Sl. No. 20 or 21) or of the Unit Trust of India.20%

8.Total income as reduced by income referred to against serial numbers 1 to 7.Rates in force.

(2) Where the total income of a non-resident (not being a company) or of a foreign company, includes any income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made with Government or an Indian concern after the 31st March .... To read the full section download the app from Google Play store