Section 206AA

Benefit to Non- Residents under Income Tax Act, 1961

Income Tax - Articles explain who is Non-Resident Individual, Partnership firm, Company for Income Tax Purpose, Taxable Income of Non Residents, Tax on Indirect transfer of a capital asset situated in India by Non-Residents, activities not to constitute business connection in India, Exemption from applicability of Section 206AA to non-residents...

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Tax Deducted at Source (TDS): FAQs

Income Tax - 1) Whether capitalization of interest payable attracts TDS U/S 194A? Whether conversion of out standing interest on loan into loan attracts TDS? Difference between Form-15G and Form-15H? Difference between TDS and TCS? What is due date for remittance of TDS certificates? (Form-16 and Form-16A)...

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Income Tax TDS/TCS Amendments vide Finance Act, 2021

Income Tax - Amendments in TDS/TCS as notified vide Finance Act, 2021 as passed by Lok Sabha/Rajya Sabha and Assented by Hon’ble President on 28th March 2021: Hello readers, AS we know TDS /TCS proposals in Finance Bill 2021 notified on 23.03.2021. Let us understand in very simplified manner- Amendment in Section 194 – Exemption from TDS on [&...

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Tax Deduction at Source (TDS) on purchase of goods

Income Tax - Chapter XVIIB of the Act relates to deduction of tax at source. The provisions of this chapter provide for TDS on various payments at rates contained therein. It is proposed to provide for TDS by person responsible for paying any sum to any resident for purchase of goods. The rate of TDS is kept very […]...

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Note on DTAA and section 206AA

Income Tax - Whether provisions of Section 206AA overrides DTAA? -When it comes to deduction of TDS while remitting any payment to Non Resident the beneficial provisions of DTAA & Income Tax Act -Provisions in the DTAA clearly ovveride the provisions of the Act, to the extent the provisions are more favourable to the -As per section 206AA, [&helli...

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Exempt Non-Residents Having TIN from Applicability of TDS at Higher Rate U/s. 206AA

Income Tax - Under the current provisions of Section 206AA, tax is required to be deducted by the deductor at a higher rate as prescribed under the said section, where the deductee does not furnish his Permanent Account Number (PAN). This section was introduced with the objective that the furnishing of PAN was important with a view to trail the taxabi...

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Rationalisation of Withholding tax on interest payments on borrowings of Infrastructure Debt Funds

Income Tax - Rationalisation of With-Holding Tax (WHT) to Encourage Greater Subscription in Indian Debt Securities by Foreign Investors, Encourage Development of the Indian Debt Market and Accelerate the Pace of Growth of the Indian Economy. ...

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Reminder : Person receiving income subject to withholding tax is required to obtain Permanent Account Number (PAN)

Income Tax - The Finance (No.2) Act of 2009 introduced section 206AA under the Income Tax Act, 1961 (the ITA) to provide that any person who is entitled to receive any sum or income or amount, on which tax is to be withheld under the ITA shall furnish PAN to the person responsible for withholding of tax. In case PAN is not furnished, minimum withholdi...

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With effect from 1 April 2010 higher rate of tax applies for tax withholding where PAN is not provided

Income Tax - The Finance Act, 2009 introduced new provisions (section 206AA) in the Income-tax Act, 1961 (the Act). As per these provisions any person entitled to receive any sum on which tax is deductible under the Act shall furnish its Permanent Account Number (PAN) to the deductor. In case of failure in providing PAN to the deductor, the deductor i...

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New Pan Provisions Very Harsh; Even non- residents need to Comply new provisions

Income Tax - PAN is the basic ‘penetrating needle’ for the Income tax Department to rope in every income earning person. It is a fact that our taxbase continues to be a major concern for policy makers. And in order to widen the taxpayers’ base the I-T Department intends to ride the vehicle of PAN in a big […]...

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Section 206AA not overrides beneficial provisions of DTAA with Neitherland

Air India Limited Vs ITO (ITAT Delhi) - Air India Limited Vs ITO (ITAT Delhi) Undisputedly, the dispute in the instant appeals is qua applying the TDS rate at 12% or 10% on transfer between ELFC and the assessee for taking an engine on lease under an Agreement. It is also not in dispute that ELFC, the lessor is a foreign company having [&...

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TDS Rate on payment to non resident not having PAN

DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore) - DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore) The question before the special bench was whether the provisions of section 206AA had overriding effect for all other provisions of the Act, whether the assesse has to deduct tax at source at the rates prescribed in section 206AA in case the payees ar...

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Architectural Services provided to Singapore Entity Taxable at 10% when DTAA Benefit is Available

Mantri Technology Constellations Pvt. Ltd. Vs DCIT (ITAT Bangalore) - The issue under consideration is whether the architectural services provided to Singapore Entity taxable at 10% or 20% when the benefit of Double Taxation Avoidance Agreement (DTAA) is available?...

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DTAA overrides Section 206AA of Income Tax Act, 1961

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore) - DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore) At the time of hearing it was not disputed that the issue raised by the revenue in its appeals are already decided by a Special Bench of ITAT, Hyderabad. The issue regarding the applicability of provisions of section 206AA of the Act, in cases of ta...

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DTAA overrides the Act, even if it is Inconsistent with the Act

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore) - whether the assessee has to deduct tax at source at the rates prescribed in section 206AA in case the payees are unable to furnish their PANs, even if tax liability arises out of the treaty?...

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Relaxation from deduction of tax at higher rate U/s. 206AA

Notification No. 53/2016-Income Tax - (24/06/2016) - 37BC. Relaxation from deduction of tax at higher rate under section 206AA.– (1) In the case of a non-resident, not being a company, or a foreign company and not having PAN the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical ...

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Recent Posts in "Section 206AA"

Benefit to Non- Residents under Income Tax Act, 1961

Articles explain who is Non-Resident Individual, Partnership firm, Company for Income Tax Purpose, Taxable Income of Non Residents, Tax on Indirect transfer of a capital asset situated in India by Non-Residents, activities not to constitute business connection in India, Exemption from applicability of Section 206AA to non-residents...

Read More
Posted Under: Income Tax | ,

Tax Deducted at Source (TDS): FAQs

1) Whether capitalization of interest payable attracts TDS U/S 194A? Whether conversion of out standing interest on loan into loan attracts TDS? Difference between Form-15G and Form-15H? Difference between TDS and TCS? What is due date for remittance of TDS certificates? (Form-16 and Form-16A)...

Read More
Posted Under: Income Tax | ,

Section 206AA not overrides beneficial provisions of DTAA with Neitherland

Air India Limited Vs ITO (ITAT Delhi)

Air India Limited Vs ITO (ITAT Delhi) Undisputedly, the dispute in the instant appeals is qua applying the TDS rate at 12% or 10% on transfer between ELFC and the assessee for taking an engine on lease under an Agreement. It is also not in dispute that ELFC, the lessor is a foreign company having […]...

Read More

Income Tax TDS/TCS Amendments vide Finance Act, 2021

Amendments in TDS/TCS as notified vide Finance Act, 2021 as passed by Lok Sabha/Rajya Sabha and Assented by Hon’ble President on 28th March 2021: Hello readers, AS we know TDS /TCS proposals in Finance Bill 2021 notified on 23.03.2021. Let us understand in very simplified manner- Amendment in Section 194 – Exemption from TDS on [&...

Read More
Posted Under: Income Tax |

Tax Deduction at Source (TDS) on purchase of goods

Chapter XVIIB of the Act relates to deduction of tax at source. The provisions of this chapter provide for TDS on various payments at rates contained therein. It is proposed to provide for TDS by person responsible for paying any sum to any resident for purchase of goods. The rate of TDS is kept very […]...

Read More
Posted Under: Income Tax |

TDS Rate on payment to non resident not having PAN

DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore)

DCIT Vs. Edgeverse Systems Ltd. (ITAT Bangalore) The question before the special bench was whether the provisions of section 206AA had overriding effect for all other provisions of the Act, whether the assesse has to deduct tax at source at the rates prescribed in section 206AA in case the payees are unable to furnish their […]...

Read More

Architectural Services provided to Singapore Entity Taxable at 10% when DTAA Benefit is Available

Mantri Technology Constellations Pvt. Ltd. Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the architectural services provided to Singapore Entity taxable at 10% or 20% when the benefit of Double Taxation Avoidance Agreement (DTAA) is available?...

Read More

DTAA overrides Section 206AA of Income Tax Act, 1961

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore)

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore) At the time of hearing it was not disputed that the issue raised by the revenue in its appeals are already decided by a Special Bench of ITAT, Hyderabad. The issue regarding the applicability of provisions of section 206AA of the Act, in cases of tax to […]...

Read More

DTAA overrides the Act, even if it is Inconsistent with the Act

DCIT Vs Bharath Fritz Werner Ltd. (ITAT Bangalore)

whether the assessee has to deduct tax at source at the rates prescribed in section 206AA in case the payees are unable to furnish their PANs, even if tax liability arises out of the treaty?...

Read More

Note on DTAA and section 206AA

Whether provisions of Section 206AA overrides DTAA? -When it comes to deduction of TDS while remitting any payment to Non Resident the beneficial provisions of DTAA & Income Tax Act -Provisions in the DTAA clearly ovveride the provisions of the Act, to the extent the provisions are more favourable to the -As per section 206AA, [&helli...

Read More
Posted Under: Income Tax |

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