Taxation of Income of Non Residents Under Direct Tax Laws

Book Details

Chapter 1: Introduction	1
Chapter 2: Non Resident : Scope of Total Income[Section 5(2)]	11
Chapter 3: Residential Status [Section 6]	19
Chapter 4: Indian Citizen who is not liable to Tax in any other Country or Territory shall be Deemed to be Resident in India [Section 6(1A)]	44
Chapter 5: Residential Status of a Hindu Undivided Family, firm or other Association of Persons [Section 6(2)]	48
Chapter 6: Residential Status of a Company [Section 6(3)]	51
Chapter 7: Determination of Place of Effective Management (POEM)	68
Chapter 8: Different Residential Status in Respect of different Previous Years of the same Assessment Year not Possible [Section 6(5)] 94
Chapter 9: Resident but not Ordinarily Resident (RNOR)) [Section 6(6)]	95
Chapter 10: Non Resident Status under Foreign Exchange Management Act, 1999 (FEMA)	100
Chapter 11: Income Deemed to Accrue or Arise in India [Section 9(1)]	109
Chapter 12: Incidence of Tax in Respect of Non-Resident	111
Chapter 13: Incomes of Non-Resident Indians (NRIs) which do not form Part of Total Income (Exempt Income) )[Section 10)]	123
Chapter 14: Exemption of Income of a Non-Resident from Transfer of Non-Deliverable Forward Contracts, Offshore Derivative Instrument [Section 10(4E)]	136
Chapter 15: Computation of Income of Non Resident	144
Chapter 16: Income from Salary of a Non-Resident Indian	151
Chapter 17: Income Falling under the Head Salaries - if it is Earned in India [Section 9(1)(ii)]	177
Chapter 18: Income Falling under the Head Salaries – if Payable by the Government to a Citizen of India for Service Outside India[Section 9(1)(iii)]	181
Chapter 19: Taxation of Seafarer Income in India	187
Chapter 20: Taxability of Secondment of Employees	201
Chapter 21: Income from House Property of a Non-Resident	208
Chapter 22: Income from Business or Profession of a Non-Resident	215
Chapter 23: Income from Business Connection in India [Section 9(1)(i)]	225
Chapter 24: Certain Activities not to Constitute Business Connection in India [Section 9A]	250
Chapter 25: Deduction of Head Office Expenditure in the Case of Non-Residents [Section 44C]	265
Chapter 26: Applicability of Permanent Establishment (PE) in India and its Impact	281
Chapter 27: Liaison Office of a Foreign Company in India	359
Chapter 28: Special provision for Computing Profits and Gains of Shipping Business other than Cruise Shipping in the Case of Non-Residents [Section 44B]	382
Chapter 29: Special Provision for Computing Profits and Gains of Business of Operation of Cruise Ships in case of Non-Residents [Section 44BBC]	392
Chapter 30: Shipping Business of Non-Residents - Levy and Recovery of Tax [Section 172]	�
Chapter 31: Computing Profits and Gains in Connection with the Business of Exploration, etc., of Mineral Oils [Section 44BB]	416
Chapter 32: Computing Profits and Gains of the Business of Operation of Aircraft in the Case of Non-Residents [Section 44BBA]	437
Chapter 33: Computing Profits and Gains of Foreign Companies Engaged in the Business of Civil Construction, etc., in Certain Turnkey Power Projects [Section 44BBB]	443
Chapter 34: Income from Other Sources of a Non Resident	454
Chapter 35: Dividend Paid by an Indian Company Outside India Taxable in India [Section 9(1)(iv)]	458
Chapter 36: Income by way of Interest Payable by - the Government of India, or by a Resident or a Non-Resident in Certain Situations [Section 9(1)(v)]	462
Chapter 37: Income by way of Royalty which is Payable by - the Government, Resident or by a Non-Resident [Section 9(1)(vi)]	470
Chapter 38: Special Provisions for Computing Income by way of Royalties, etc., in the Case of Foreign Companies [Section 44D]	496
Chapter 39: Special Provision for Computing Income by way of Royalties, etc., in Case of Non-Residents [Section 44DA]	516
Chapter 40: Income by way of Fees for Technical Services (FTS)[Section 9(1)(vii)]	523
Chapter 41: Deemed Accrual of Gift Made to a Person Outside India by Resident [Section 9(1)(viii)]	546
Chapter 42: Income from Capital Gains of a Non-Resident	550
Chapter 43: Purchase of Immovable Property by Non-Resident Indian in India – Income Tax Implications	590
Chapter 44: Residents – Purchase a Property Abroad – Income Tax Implications	598
Chapter 45: Taxation of Income Received by Non-Resident Indian from Foreign Currency Assets [Section 115AB]	604
Chapter 46: Tax on Income from Bonds or Global Depository Receipts Purchased in Foreign Currency or Capital Gains Arising from their Transfer [Section 115AC]	610
Chapter 47: Tax on Income from Global Depository Receipts Purchased in Foreign Currency or Capital Gains Arising from their Transfer [Section 115ACA]	619
Chapter 48: Tax on Income of Specified Fund or Investment Division of an Offshore Banking Unit or Foreign Institutional Investor from Securities or Capital Gains Arising from their Transfer [Section 115AD]	627
Chapter 49: Tax on Investment Income and Long-Term Capital Gains [Section 115E]	639
Chapter 50: Capital Gains on Transfer of Foreign Exchange Assets by a Non-Resident Indian (NRI) not to be Charged in Certain Cases [Section 115F]	644
Chapter 51: Double Taxation Avoidance Agreements (DTAA)	652
Chapter 52: Agreement with Foreign Countries or Specified Territories [Section 90]	681
Chapter 53: Adoption by Central Government of Agreement between Specified Associations for Double Taxation Relief [Section 90A]	697
Chapter 54: Countries with which no Agreement Exists [Section 91]	701
Chapter 55: “Tax Residency Certificate� (TRC)	708
Chapter 56: Transfer Pricing [Section 92 to 92F]	739
Chapter 57: Safe Harbour Rules [Section 92CB]	769
Chapter 58: Reference to Dispute Resolution Panel [Section 144C]	772
Chapter 59: Mutual Agreement Procedure (MAP) - An Alternative Dispute Resolution Mechanism	812
Chapter 60: Concept of Most Favoured Nation (MFN) Clause	870
Chapter 61: Concept of ‘Make Available Clause’	903
Chapter 62: Foreign Tax Credit (FTC) on Taxes Paid	931
Chapter 63: Taxability of Income from Dividends or Interest in the Case of Non-Residents [Section 115A]	955
Chapter 64: Tax on Income of Non-Resident Sportsmen/Sports Associations or Entertainer [Section 115BBA]	971
Chapter 65: Special Provision for Computation of Total Income of Non-Residents [Section 115D]	982
Chapter 66: Special Provisions not to Apply if Non-Resident Indian -Assessee so Chooses [Section 115-I]	985
Chapter 67: Agent in Relation to a Non-Resident [Section 163]	989
Chapter 68: Recovery of Tax in Respect of Non-Resident from his Assets [Section 173]	1013
Chapter 69: Assessment of Persons Leaving India [Section 174]	1015
Chapter 70: Deductions from Total Income Available to Non-Resident Indians (NRIs)	1020
Chapter 71: TDS from Payments to Non-Resident Sportsmen or Sports Associations [Section 194E]	1027
Chapter 72: Tax Deductions at Source for Non-Resident Indians [Section 195]	1036
Chapter 73: Application by Payer to Assessing Officer for Determining Appropriate Portion of Sum Chargeable [Section 195(2)]	1095
Chapter 74: Application by the “Payee� to the Assessing Officer for a Certificate without Deduction of Tax at Source [Section 195(3)]	1102
Chapter 75: Payments Made to Non-Residents & Requirement to Furnish Form No. 15CA/ Form No. 15CB/ Form No. 15CC Arises from Section 195(6) [Section 195(6)]	1109
Chapter 76: Income Payable “Net of Tax� �[Section 195A]	1130
Chapter 77: TDS from Income in Respect of Units of Non-Residents [Section 196A]	1136
Chapter 78: Certificate for Deduction at Lower Rate [Section 197]	1140
Chapter 79: Consequences of Non-Compliance of TDS Provisions	1159
Chapter 80: Tax Clearance Certificate [Section 230]	1172
Chapter 81: Refund for Denying Liability to Deduct Tax in Certain Cases [Section 239A]	1191
Chapter 82: Authority for Advance Rulings [Section 245N to 245W]	1196
Chapter 83: Non-Resident Indians (NRIs) Investment in India-General Permissions	1229
Chapter 84: Portfolio Investment Scheme	1248
Chapter 85: Barred Investment	1251
Chapter 86: Resident - Overseas Investments	1253
Chapter 87: Residents – Borrowing & Lending from a Person Resident Outside India	1260
Chapter 88: Non-Resident Indian’s Bank Accounts in India	1263
Chapter 89: Remittance of Funds	1269
Chapter 90: Spending Forex Limits Going Abroad 1285
Chapter 91: Liberalised Remittance Scheme (LRS) for Resident Individuals	1290
Chapter 92: Non-Resident Indians (NRIs) – Gift	1320
Chapter 93: Filing of Income Tax Return by Non-Resident Indian	1331
Chapter 94: Return of Income not to be Filed in Certain Cases [Section 115-G]	1339
Chapter 95: Turning into a Non-Resident Indian (NRI) – Check Points	1340
Chapter 96: Returning NRI – A Non-Resident when Becomes Resident of India – Taxation	1344
Chapter 97: Benefit under Chapter XII-A to be Available in Certain Cases Even after the Assessee Becomes Resident [Section 115-H]	1353
Chapter 98: Non-Resident – Requirement of Obtaining Permanent Account Number (PAN) & Aadhaar Card	1359
Chapter 99: Person of Indian Origin (PIO)	1374
Chapter 100: Overseas Citizen of India (OCI) Card	1379
Chapter 101: Tax Rates from Assessment Year 2020-21 Onwards	1383
Chapter 102: Jurisdiction of International Taxation	1393
Chapter 103: Organization for Economic Cooperation and Development [OECD]	1394
Chapter 104: Equalisation Levy	1410
Chapter 105: Frequently Asked Questions	1432
Chapter 106: Population of Overseas Indians in 2023 : Country Wise	1140

About the Author

Ram Dutt Sharma

Ram Dutt Sharma was born on 27th June, 1958 in Narnaul, Haryana. He got his post-graduation from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and retired as Income Tax Officer on 30.06.2018. He worked at various stations of North-West Region of Income-tax Department. He has wide experience of all wings of Income-tax Department such as Assessment Unit, Special Range, TDS Wing, Investigation Wing, etc. He has been Contributing articles and addressing on topics relating to Income Tax at NADT Regional Campus, Chandigarh & Bhopal. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations.

He is recipient of first-ever Finance Minister's Award 2017, the Income Tax Departments highest honour for sustained devotion, commitment to duty & promoting excellence in the field of Direct Taxation at National Level. The Hon'ble Union Finance Minister, Shri ArunJaitley conferred this Finance Ministers Award for Excellence for his meritorious services at VigyanBhawan, New Delhi on 24.07.2017.

Awarded by Hon'ble Member (Revenue& TPS), CBT, Special Secretary to the Government of India Certificate of Appreciation for his contribution recognized and included in the chapter Miscellaneous Orders in Let Us Share A compilation of Best Practices & Orders Vol. VIII released on 31stOctober, 2016.

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