in CA final Book by Vinod Gupta, it is specifically mentioned
under section 44DA that,
>> it is optional to claim 44DA or 115A
but in sec. 115 A that this section doesnot apply to those NR on whom 44 DA applies.
>>PLease Explain the Applicability of these 2 sections clearly.
It is true. It is optional to claim 44DA or 115A.
It means that either you can choose 44DA or you can choose 115A. You cannot choose both.
If you apply 44DA, it will be taxed as business income and will be taxed as per normal slab rates. But if 115A is applied, it will be taxed as per rates mentioned in 115A.
As per sec 115A, it means that where 44DA is applied, you cannot tax at rates specified in 115A.
Hope you get it what I mean
Section 115A does not apply if non resident or foreign company has PE in India so in that case section 44DA shall be applied. In other cases Section 115A shall be applied.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
