Module I Part IV

Exempted Incomes of Companies

Prof. Suprio Ghatak, Amity Business School, Amity University Haryana

Income that is Exempt from Tax

In the following cases, income of companies is exempt from tax, as it does not form part of total income. The burden of proving that a particular item of income falls within this section is on the assesse. Agricultural Income Sec 10(1) Interest received by a non-resident from prescribed securities Sec 10(4) Tax paid on behalf of foreign companies Sec 10(6A) Income arising to notified foreign companies from services provided in or outside India in projects related to the security of India Sec 10(6C)
Prof. Suprio Ghatak, Amity Business School, Amity University Haryana
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Income that is Exempt from Tax

Remuneration or fees received by non-resident consultants & their foreign employees Sec 10(8A), (8B) and (9) Tax on perquisite paid by employer Sec 10(10CC) Interest from certain exempted securities Sec 10(15) Payment made by an Indian company, engaged in the business of operation of an aircraft, to acquire an aircraft on lease from a foreign government or foreign enterprise if a few conditions are satisfied Sec 10(15A)

Prof. Suprio Ghatak, Amity Business School, Amity University Haryana

Income that is Exempt from Tax

Income of a Mutual Fund set up by a public sector bank or public financial institution Sec 10(23D) Income of a venture capital fund or venture capital company Sec 10(23F) Subsidy from the Tea Board for replanting or replacement of tea bushes or consolidation of areas used for cultivation of tea in India Sec 10(30) Capital gains on transfer of US 64 Sec 10(33) Dividend on or after April 1, 2003 from domestic companies Sec 10(34)
Prof. Suprio Ghatak, Amity Business School, Amity University Haryana
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Income that is Exempt from Tax

Interest on units of a Mutual Fund on or after April 1, 2003 Sec 10(35) Capital gains on transfer of listed equity shares Sec 10(36) Capital gains on compensation received on compulsory acquisition of urban agricultural land Sec 10(37) Long-term capital gains on transfer of securities not chargeable to tax in cases covered by transaction tax Sec 10(38)

Prof. Suprio Ghatak, Amity Business School, Amity University Haryana

Income that is Exempt from Tax

Grant received by subsidiary company from holding company Sec 10(40) Capital gain in the above case Sec 10(41) New undertakings in SEZ [Special Economic Zone] Sec 10-A New units in SEZ Sec 10-AA 100 per cent Export Oriented Undertaking [EOU] Sec 10-B

Prof. Suprio Ghatak, Amity Business School, Amity University Haryana

Reference

Chapter 1 - Law of Income Tax in Brief Corporate Tax Planning & Business Tax Procedures by Dr. Vinod K Singhania and Dr. Monica Singhania

Prof. Suprio Ghatak, Amity Business School, Amity University Haryana