![]() ![]() Relaxation to NRIs from deduction of tax at higher rate (except income distributed by mutual fund) in the absence of Permanent Account Number (PAN) is subject to the NRI providing specified information and documents.As per section 112 of the Act, long-term capital gains in case of NRIs would be taxable 10% on transfer of capital assets, being unlisted securities, computed without giving effect to first and second proviso to section 48 i.e., without taking benefit of foreign currency fluctuation and indexation benefit.Furthermore, as per section 90(5) of the Act, non-resident is also required to provide such other documents and information, as prescribed by CBDT, as applicable. As per section 90(4) of the Act, a non-resident shall not be entitled to claim treaty benefits, unless the non-resident obtains a Tax Residency Certificate of being a resident of home country. Non-resident individuals (NRI) shall be entitled to be governed by provisions of the applicable Tax Treaty, which India has entered with the country of residence of the NRI, if that is more beneficial than the provisions of the Act, subject to certain conditions.STT in not applicable in respect of purchase/ sale/ redemption of units of other schemes (other than EOFs). ![]() Securities Transaction Tax ('STT') is applicable only in respect of sale of units of Equity-oriented funds (EOFs) on a recognised stock exchange and on repurchase (redemption) of units of EOFs by the mutual fund.Tax to be deducted at source as per section 196A of the Income tax Act, 1961 (‘the Act’).Provided that the mutual fund units are held as capital assets.Tax & TDS are subject to applicable Surcharge and Health & Education Cess at the rate of 4%. *With indexation $Without indexation = Income Distribution cum Capital Withdrawal TDS 6,7 on Distributed Income under IDCW Option Tax on Distributed Income under IDCW Option ![]()
0 Comments
Leave a Reply. |