Section 115AD of the Income-tax Act governs the taxation provisions applicable to Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) on their income from securities and capital gains in India. It provides specific tax rates for interest, dividends, and short-term or long-term capital gains arising from investments in Indian securities.

Section 115AC of the Income Tax Act governs the taxation of interest and dividends earned by non-residents from Global Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs), and other specified securities issued by Indian companies. It offers a concessional 10% tax rate and simplified compliance.

Section 112A of the Income Tax Act governs the taxation of long-term capital gains (LTCG) arising from the sale of listed equity shares, units of equity-oriented mutual funds, or units of business trusts. Gains above ₹1 lakh are taxed at 10% without indexation, provided STT conditions are met. Understanding 112A is crucial for investors and traders planning their equity exits or portfolio rebalance to optimize tax liability. Learn how exemptions, grandfathering rules, and filing provisions apply under this section.

Section 111A of the Income Tax Act deals with short-term capital gains (STCG) arising from the sale of equity shares or equity-oriented mutual funds through a recognized stock exchange. These gains are taxed at a concessional flat rate of 15% provided Securities Transaction Tax (STT) is paid. Additional cess and surcharge may apply. This section is crucial for investors and traders engaged in frequent equity transactions.

Overview of TCS on Sale of Goods (Section 206C(1H)):
Section 206C(1H) mandates that sellers collecting payments exceeding ₹50 lakhs from a buyer in a financial year must collect Tax Collected at Source (TCS) at 0.1% (0.075% till 30.06.2021 due to COVID relief) on the amount exceeding ₹50 lakhs. It applies only to businesses with turnover above ₹10 crore in the preceding FY.

Section 44AA of the Income Tax Act mandates certain persons engaged in specified professions or businesses to maintain books of accounts. The objective is to enable proper assessment of income and ensure tax compliance.

Section 197 of the Income Tax Act empowers eligible taxpayers to apply for a certificate for nil or lower TDS deduction using Form 13. This provision helps in avoiding excess tax deduction at source where income is below taxable limits or eligible for lower tax rate due to exemptions, deductions or DTAA. The application is made online via TRACES portal, and the certificate is issued by the Assessing Officer after due verification.

Explore the top legal tax planning and optimization strategies for individuals and businesses in India. A 2025 guide to reducing tax burden legally and efficiently.

Income tax compliance in India involves timely filing of returns, TDS payments, advance tax, audits, and responding to income-tax notices. Non-compliance may lead to penalties or prosecution. Know your obligations and how to meet them.

DTAA (Double Taxation Avoidance Agreement) ensures taxpayers don’t pay tax twice on the same income in India and a foreign country. Learn how DTAA works, eligible incomes, and how to claim relief under Indian tax law.