Income-tax Act, 2025

Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer - Section 210

Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

210. (1) The income-tax payable on the total income of an assessee, being a specified fund or Foreign Institutional Investor, which includes income referred to in 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.Income in respect of securities other than units referred to in
section 208.

(a) 20% in case of Foreign Institutional Investor;

(b) 10% in case of specified fund.

2.Short-term capital gains (not being short-term capital gains referred to in section 196) arising from the transfer of such
securities.30%

3.Short-term capital gains referred to in section 196 arising from the transfer of such
securities.20%

4.Long-term capital gains (not being long-term capital gains referred
to in section 198 arising from the transfer of such securities).12.5%

5.Long-term capital gains referred to in section 198 arising from the
transfer of such securities which exceeds 125000.12.5%

6.Total income as reduced by income referred to against serial numbers 1 to
5.Rates in force.

(2) In case of specified fund, provisions of this section shall apply only to the extent of income that is attributable to units held by non-resident (not being a permanent establishment of such non-resident in India) calculated in the manner as may be prescribed, irrespective of the provisions of sub-section (1).

(3) Irrespective of anything contained in sub-section (1), where the specified fund is an investment division of an offshore banking unit, the provisions of this section shall apply to the extent of income that is attributable to such investment division referred to in .... To read the full section download the app from Google Play store