Foreign Remittances for Share Capital Are Capital, Not Deemed Income: Delhi HC

Russian Technology Centre (P) Ltd. Vs DCIT (Delhi High Court) In a significant ruling, the Delhi High Court has clarified the taxability of foreign remittances received by Indian companies, particularly in the context of share capital. The court, in the case of Russian Technology Centre (P) Ltd. Vs. DCIT, held that once the identity and creditworthiness of non-resident shareholders and the genuineness of the transaction are established, such remittances, received through banking channels, should be treated as capital receipts and not as “deemed income” under Sections 68 or 69 of th...