Last modified: 23 August 2016

Non-Residents - Special Tax Rates

S. No.SectionParticularsRates
1112(1)(c)Long Term Capital Gains20%
2112(1)(c)Long term capital gains arising from transfer of a capital asset, being unlisted securities or shares of a company not being a company in which public are substantially interested.10%
3112(1)(c)Concessional rate of tax if long term capital gains arising from transfer of listed securities or units or zero coupon bonds is calculated without taking into consideration the benefit of indexation.

If transfer takes place after July 10, 2014, the above concessional rate of tax will not be available in case of long-term capital gain arising from transfer of units (As amended by the Finance (No. 2) Act, 2014).

10%
410(38)Long-term capital gains arising from transfer of equity shares or units of equity oriented fund or a unit of business trust is exempt from tax if such transaction is chargeable to securities transaction tax.

With effect from assessment year 2016-17, the exemption shall also be available for an income arising from transfer of any units of a business trust which were acquired in consideration of a transfer referred to in Section 47(xvii) and in respect of which security transaction tax has been paid.

Nil
5111AConcessional rate of tax if short term capital gains arising from transfer of equity shares or units of an equity oriented fund, or a unit of business trust is chargeable to securities transaction tax.

With effect from assessment year 2016-17 the concessional tax rate shall also apply to any income arising from transfer of any units of a business trust which were acquired in consideration of a transfer referred to in section 47(xvii) and in respect of which security transaction tax has been paid.

15%
6115A(1)(a)(i)Dividends other than as referred to in Section 115-O20%
7115A(1)(a)(ii)Interest received from Government or an Indian concern on monies borrowed or debt incurred in foreign currency20%
8115A(1)(a)(iia)Interest from notified Infrastructure Debt Fund as referred to in section 10(47)5%
9115A(1)(a)(iiaa)Interest received from Indian Company on monies borrowed by it in foreign currency from a source outside India under a loan agreement or through issue of any long-term bond as referred to in Section 194LC (Subject to certain conditions).5%
10115A(1)(a)(iiab)Interest on Rupee Denominated Bonds of an Indian Company or Government Securities received during 01.06.2013 and 30.06.2017 by FIIs / QFIs as referred to in Section 194LD (Subject to certain conditions).5%
11115A(1)(a)(iiac)Interest received from business trusts, being of the nature referred to Section 10(23FC), by its unit holders as referred to in Section 194LBA (Subject to certain conditions).5%
12115A(1)(a)(iii)Income in respect of units purchased of a Mutual Funds in foreign currency [specified under section 10(23D) or of UTI]20%
13115A(1)(b)Income by way of Royalty or FTS (other than income referred to in Section 44DA) received in pursuance of an agreement made at any time after 31-03-197610%
14115ABIncome of an overseas financial organization on transfer of units purchased in foreign currency being long-term capital gains10%
15115ACIncome from bonds or GDRs of a public sector company sold by the Government and purchased in foreign currency or long-term capital gains arising from their transfer [other than dividends as referred to in section 115-O]10%
16115AD(b)Short term capital gains earned by FIIs as referred to in Section 111A15%
17115AD(b)Any other short term capital gain earned by FIIs (other than as referred to in Section 111A)30%
18115AD(b)Long term capital gains earned by FIIs10%
19115AD(a)Interest referred to in section 194LD earned by FIIs5%
20115AD(a)Other income earned by FIIs [other than dividends as referred to in Section 115-O]20%
21115BBA(1)(a)/(b)Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money20%
22115BBA(1)(c)Income of non-resident foreign citizen (being an entertainer) for performance in India20%
23115EIncome from foreign exchange asset of non-resident Indian [not applicable in the case of dividends referred to in section 115-O]20%
24115ELong-term capital gain from transfer of foreign exchange asset by non-resident Indian10%

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