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Dividend Income other than dividends covered

Dividend Income other than dividends covered

Tax Rates as per DTAAs and Income Tax Act

Non-residents can compute their tax liability as per the tax rates prescribed under the Income-tax Act
or
the rates prescribed under the DTAAs (Double Taxation Avoidance Agreements), whichever is more beneficial.

This page contains tax rates prescribed under the Income-tax Act and under the DTAAs for following incomes:

Dividend Income other than dividends covered u/s 115-O

Tax Rates applicable on dividend Income (other than dividend covered under Section 115-O) as per Income Tax Act

  1. 10% on income from Global Depository Receipts under Section 115AC(1)(b) of Income-tax Act, 1961 (other than dividends referred to in section 115-O).
  2. 20% under Section 115A on dividend (other than dividends referred to in section 115-O) received by a foreign company or a non-resident non-corporate assessee
  3. 20% under Section 115AD on dividend (other than dividends referred to in section 115-O) received by a Foreign institutional investor.

Tax Rates applicable on dividend Income (other than dividends covered u/s 115-O) as per DTTAs

CountryTax Rates as per DTAA
Albania
Armenia
Australia
Austria
Bangladesh
Belarus
Belgium
Botswana
Brazil
Bulgaria
Canada
China
Columbia
Cyprus
Czeck Republic
Denmark
Estonia
Ethiopia
Finland
Fiji
France
Georgia
Germany
Hungary
Indonesia
Iceland
Ireland
Israel
Italy
Japan
Jordan
Kazakstan
Kenya
Korea
Kuwait
Kyrgyz Republic
Latvia
Lithuania
Luxembourg
Malaysia
Malta
Mangolia
Mauritius
Montenegro
Myanmar
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Norway
Oman
Philippines
Poland
Portuguese Republic
Qatar
Romania
Russian Federation
Saudi Arabia
Serbia
Singapore
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Sweden
Swiss
Syrian Arab Republic
Tajikistan
Tanzania
Thailand
Trinidad and Tobago
Turkey
Turkmenistan
Uganda
Ukraine
United Arab Emirates
United Mexican States
United Kingdom
United States
Uruguay
Uzbekistan
Vietnam
Zambia
a) 15%, if at least 10% of the voting stock of the company paying the dividend is held by the recipient company
b) 25% in other cases

Interest

Tax Rates applicable on Interest Income as per Income Tax Act

  1. 20% under Section 115A on interest received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency.
  2. 10% under Section 115AC on income from bonds of an Indian company issued in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf, or on bonds of a public sector company sold by the Government, and purchased by non-resident in foreign currency
  3. 5% in following cases:
    1. Interest received from an infrastructure debt fund as referred to in section 10(47)
    2. Interest received from an Indian company specified in section 194LC.
    3. Interest of the nature and extent referred to in section 194LD (applicable from the assessment year 2014-15).
    4. Distributed income being interest referred to in section 194LBA(2) (section 194LBA is inserted by the Finance (No. 2) Act, 2014 w.e.f 01-10-2014)

Dividend Income other than dividends covered

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