Yes — and here’s how it works. Many NRIs wonder if they can still claim the foreign currency capital gains benefit under Section 48 when: 1. Shares Are Gifted or Inherited Absolutely — if the original purchase was made using foreign exchange. Bottom line: The benefit follows the asset — not the person. 2. Gains…
When Non-Resident Indians (NRIs) invest in Indian capital markets, the outcome of their investments depends on more than just market performance. Currency fluctuations can significantly alter the real return on investment—often creating a mismatch between notional gains in Indian rupees and actual gains (or losses) in the investor’s home currency. To address this, Indian tax…
In a world of increasing cross-border transactions, businesses often find themselves navigating the complexities of TDS (Tax Deducted at Source) under Section 195 of the Income Tax Act. One of the most common questions professionals ask is: Can the payer compute the taxable portion and deduct TDS on their own, or is it mandatory to…
Are you deducting TDS under Section 195 on foreign remittances? Here’s a twist that could either save you money—or land you in a compliance trap. Many businesses and finance heads grapple with one key question: Should TDS under Section 195 be deducted on the gross amount or just on the income portion of the payment?…
If you’re an NRI living in the United States and investing in Indian mutual funds, you might assume you’re making all the right moves for long-term wealth creation. But there’s a hidden tax trap waiting to bite—and it has everything to do with mismatched tax systems between India and the U.S. So, will you pay…
If you’re a UAE resident investing in Indian mutual funds, a common question arises — Will I be taxed on my mutual fund gains in India? Short answer: No.But it comes with a few key conditions. This tax treatment stems from how India’s domestic tax laws interact with the India-UAE DTAA (Double Taxation Avoidance Agreement).…
Facts of the Case The assessee is a GST-registered proprietary concern and a resident of India, engaged in the resale of virtual tokens. These tokens are purchased from Tangome INC (USA) and resold to individual buyers within the Tango App, where they hold value exclusively. 1. Taxability Under Section 9(1)(i) – Business Connection and SEP…
Introduction Seconding employees—whether expatriates working in India or Indian employees sent abroad—comes with significant tax and compliance challenges. Determining the economic employer, classifying salary reimbursements, and adhering to Section 195 of the Income-tax Act and applicable Double Taxation Avoidance Agreements (DTAAs) are critical steps in ensuring compliance. This blog explores the tax implications of secondment…
SaaS Model: How It Works Software as a Service (SaaS) is a cloud-based software distribution model that allows users to access applications over the internet without needing to install them on their local systems. SaaS providers host and manage software applications, offering them to customers on a subscription basis. Key Features of SaaS: With the…
Introduction The taxation of payments made to non-residents for royalty or fees for technical services (FTS) is a critical aspect of Indian tax law. These classifications determine TDS applicability, DTAA benefits, and compliance requirements. Section 9(1) of the Income-tax Act, 1961, defines royalty and FTS, forming the basis for determining taxability. This article breaks down…