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Query on 44da

Tax queries 862 views 3 replies

Rohit

getlost

24 Points Posted on 03 June 2015

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.

Replies (3)

santosh shukla

article

34 Points Posted on 29 October 2015

facing same problem :-(

Miss Rinkal

Student

1309 Points Posted on 30 October 2015

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

CA Sonal Gupta

Chartered Accountant

66 Points Posted on 21 January 2016

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.