Income Tax Act

Official PDF pages 251–255

SOURCE PDF PAGE 251
ing Officer shall calculate the total of the various sums of tax as per the provisions
of paragraph 9 thereof.
Tax in case of block assessment of search cases.
192.   (1) Irrespective of anything contained in any other provisions of this Act, the
total undisclosed income of the block period, determined under section 294
shall be chargeable to tax at the rate of 60%.
(2) The tax chargeable under sub-section (1) shall be increased by a surcharge, if
any, levied by any Central Act.
Tax on income from Global Depository Receipts purchased in foreign currency
or capital gains arising from their transfer.
193.   (1) Where the total income of an assessee, being an individual, who is a
resident and an employee of an Indian company engaged in specified knowl -
edge based industry or service or an employee of its subsidiary engaged in specified
knowledge based industry or service (hereafter in this section referred to as the
resident employee), includes income specified in column B of the Table below, the
income-tax payable shall be the aggregate of income-tax computed at the rate speci-
fied in the column C applied on the corresponding income specified in column B.
TABLE
Sl.
No.
Income   Rate of Income-
tax payable
A   B   C
1.   Income from dividend on Global Depository Receipts
of an Indian company engaged in specified knowledge
based industry or service, issued as per such Employees’
Stock Option Scheme as the Central Government may,
by notification
41
, specify in this behalf and purchased by
him in foreign currency.
10%
2.   Income from long-term capital gains arising from the
transfer of Global Depository Receipts referred to in
serial number 1.
12.5%
3.   Total income as reduced by income referred to in serial
numbers 1 and 2.
Rates in force.
(2) Where the gross total income of the resident employee—
( a )   consists only of income by way of dividends in respect of Global Depository
Receipts referred to in sub-section (1) (Table: Sl. No. 1), no deduction
shall be allowed to him under any other provision of this Act;
( b )   includes any income referred to in sub-section (1) (Table: Sl. No. 1
or 2),—
( i )   the gross total income shall be reduced by such income; and
( ii )   the deduction under any provision of this Act shall be allowed as
if the gross total income as so reduced were the gross total income
of the assessee.

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(3) The section 72(6) shall not apply for computation of long-term capital gains
arising out of the transfer of long-term capital asset, being Global Depository
Receipts referred to in sub-section (1) (Table: Sl. No. 2).
(4) For the purposes of this section,—
( a )   “Global Depository Receipts” means any instrument in the form of a
depository receipt or certificate (by whatever name called) created by the
Overseas Depository Bank outside India or in an International Financial
Services Centre and issued to investors against the issue of,—
( i )   ordinary shares of issuing company, being a company listed on a
recognised stock exchange in India; or
( ii )   foreign currency convertible bonds of issuing company; or
( iii )   ordinary shares of issuing company, being a company incorporated
outside India, if such depository receipt or certificate is listed and
traded on any International Financial Services Centre;
( b )   “information technology service” means any service which results from
the use of any information technology software over a system of infor -
mation technology products for realising value addition;
( c )   “information technology software” means any representation of instruc -
tions, data, sound or image, including source code and object code,
recorded in a machine readable form and capable of being manipulated
or providing inter-activity to a user, by means of an automatic data pro -
cessing machine falling under heading information technology products
but does not include non-information technology products;
( d )   “Overseas Depository Bank” means a bank authorised by the issuing
company to issue Global Depository Receipts against issue of Foreign
Currency Convertible Bonds or ordinary shares of the issuing company;
( e )   “specified knowledge based industry or service” means—
( i )   information technology software; or
( ii )   information technology service; or
( iii )   entertainment service; or
( iv )   pharmaceutical industry; or
( v )   bio-technology industry; or
( vi )   any other industry or service, as specified by the Central Govern -
ment, by notification;
( f )   “subsidiary” shall have the same meaning as assigned to it in section
2( 87 ) of the Companies Act, 2013 (18 of 2013) and includes subsidiary
incorporated outside India.
Tax on certain incomes.
[ Ss. 115B, 115BB, 115BBF, 115BBG, 115BBH and 115BBJ of the 1961 Act ]
194.   (1) Irrespective of anything contained in any other provision of this Act, where
the total income of an assessee as mentioned in column B of the Table below,

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includes income of the nature specified in column C of the said Table, the income-tax
payable by such assessee, for a tax year, shall be the aggregate of—
( a )   income-tax calculated on income mentioned in column C, at the rate
mentioned in column D, subject to the conditions specified in column
E; and
( b )   income-tax with which the assessee would have been chargeable had his
total income been reduced by income mentioned in column C thereof.
TABLE
Sl. No.   Assessee   Income   Rate
of tax
Conditions
A   B   C   D   E
1.   Any person.   Winnings (other than
from any online game)
from—
( a )   lottery; or
( b )   crossword puzzle;
or
( c )   race   including
horse   race   (not
being income from
the activity of own -
ing and maintain -
ing race horses); or
( d )   card   game   and
other game of any
sort; or
( e )   gambling or bet -
ting of any form
or nature.
30%   Nil.
2.   A person, res -
ident in India
and   who   is
a   p a t e n t e e
(herein   refe-
rred to as an
eligible asses -
see).
Royalty in respect of a
patent developed and
registered in India.
10%   ( a )   No deduction in
respect   of   any
expenditure   or
allowance shall
be allowed to the
eligible assessee
under any provi -
sion of this Act
in computing his
income referred
to in column C;
( b )   an option for tax -
ation of income
by way of roy -
alty   in   respect

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Sl. No.   Assessee   Income   Rate
of tax
Conditions
A   B   C   D   E
of a patent de -
v e l o p e d   a n d
r e g i s t e r e d   i n
India   is   exer -
cised in the pre -
scribed manner,
on or   before the
due date speci -
fied under sec -
tion 263(1) for
furnishing   the
return of income
for the relevant
tax year;
( c )   where   an   op -
tion is exercised
u n d e r   c l a u s e
( b ) and the el -
igible   assessee
does   not   offer
its   income   for
taxation as per
the provisions of
columns C and D
for any of the five
tax   years,   suc -
ceeding such tax
year, then such
assessee   shall
not be eligible to
claim the benefit
of the provisions
of   columns   C
and D for five
tax years subse -
quent to the tax
year   in   which
such income has
not been offered
to tax as per such
provisions.
3.   Any person.   Income by way of trans -
fer of carbon credits.
10%   No deduction in re -
spect of any expen -
diture   or   allowance
shall   be   allowed   to

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SOURCE PDF PAGE 255
Sl. No.   Assessee   Income   Rate
of tax
Conditions
A   B   C   D   E
the assessee under any
provision of this Act in
computing his income
referred to column C.
4.   Any person.   Any income from the
transfer of any virtual
digital asset.
30%   ( a )   No deduction in
respect of any ex -
penditure (other
than cost of ac -
quisition, if any)
or allowance or
set off of any loss
shall be allowed
to the assessee
under any provi -
sion of this Act in
computing   the
income referred
to in column C;
and
( b )   no set off of loss
from transfer of
the virtual dig -
ital asset com -
p u t e d   h e r e i n
shall be allowed
against income
computed under
any provision of
this Act to the as -
sessee and such
loss shall not be
allowed   to   be
carried forward
to   succeeding
tax years.
5.   Any person.   Any income by way of
net winnings from any
online game, computed
in the manner, as may
be prescribed.
30%   Nil.
6.   Any person.   Any profits and gains
from   life   insurance
business.
12.5%   Nil.