Section 115ACentral Act

Section 115A: [ Tax on dividends, royalty and technical service fees in the case of foreign companies. [Inserted by Act 66 of 1976, Section 20 (w.e.f. 1.6.1976).]

The Income-tax Act, 1961

[ Tax on dividends, royalty and technical service fees in the case of foreign companies. [Inserted by Act 66 of 1976, Section 20 (w.e.f. 1.6.1976).]

- ][(1) Where the total income of-

(a)

a non-resident (not being a company) or of a foreign company, includes any income by way of-]

(i)[dividends other than dividends referred to in section 115-O] [ Substituted by Act 32 of 2003, Section 50, for " dividend" (w.e.f. 1.4.2004).]; or

(ii)[ interest received from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency; or [Substituted by Act 32 of 1994, Section 32, for sub-Section (1) (w.e.f. 1.4.1995).]

(iii)income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23-D) of section 10 or of the Unit Trust of India,]

[the income-tax payable shall be aggregate of-

(A)

the amount of income-tax calculated on the amount of income by way of ][dividends other than dividends referred to in section 115-O] [ Substituted by Act 32 of 2003, Section 50, for " dividends" (w.e.f. 1.4.2004).][, if any, included in the total income, at the rate of twenty per cent.; [Inserted by Act 66 of 1976, Section 20 (w.e.f. 1.6.1976).]

(B)

the amount of income-tax calculated on the amount of income by way of interest referred to in sub-clause (ii), if any, included in the total income, at the rate of twenty per cent.;

(C)

the amount of income-tax calculated on the income in respect of units referred to in sub-clause (iii), if any, included in the total income, at the rate of twenty per cent.; and

(D)

the amount of income-tax with which he or it would have been chargeable had his or its total income been reduced by the amount of income referred to in sub-clause (i), sub-clause (ii) and sub-clause (iii);]

(b)

[a non-resident (not being a company) or a foreign company, includes any income by way of royalty or fees for technical services other than income referred to in sub-section (1) of section 44-DA] [ Substituted by Act 32 of 2003, Section 50, for " a foreigh company, includes any income by way of royalty or fees for technical services" (w.e.f. 1.4.2004).][received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy, then, subject to the provisions of sub-sections (1-A) and (2), the income-tax payable shall be the aggregate of,-] [Inserted by Act 66 of 1976, Section 20 (w.e.f. 1.6.1976).]

(A)[ the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty per cent. if such royalty is received in pursuance of an agreement made on or before the 31st day of March, 1997 and twenty per cent. where such royalty is received in pursuance of an ] [Substituted by Act 26 of 1997, Section 32, for sub-Clauses (A) and (B) (w.e.f. 1.4.1998).][agreement made after the 31st day of May, 1997 but before the 1st day of June, 2005] [ Substituted by Act 18 of 2005, Section 34, for " agreement made after the 31st day of May, 1997" (w.e.f. 1.4.2006).];

(AA)

[ the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of ten per cent. if such royalty is received in pursuance of an agreement made on or after the 1st day of June, 2005;] [ Inserted by Act 18 of 2005, Section 34 (w.e.f. 1.4.2006).]

(B)[ the amount of income-tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of thirty per cent. if such fees for technical services are received in pursuance of an agreement made on or before the 31st day of May, 1997 and twenty per cent. where such fees for technical services are received in pursuance of an ] [Substituted by Act 26 of 1997, Section 32, for sub-Clauses (A) and (B) (w.e.f. 1.4.1998).][agreement made after the 31st day of May, 1997 but before the 1st day of June, 2005] [[ Substituted by Act 18 of 2005, Section 34, for " agreement made after the</p>

Sec 115 — Tax on capital gains in case of companies

Sec 115AB — [ Tax on income from units purchased in foreign currency or capital gains arising from their transfer. [Inserted by Act 49 of 1991, Section 41 (w.e.f. 1.4.1992).]

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