International taxation means the study of Taxation beyond the boundaries of National. Though we all are very much aware of our Indian Taxation Laws as time is demanding something more so, there is a need to study the taxation at another level.
Residential status of an individual describes the taxability of that person during a county but within the case of Non-resident, only that Income which is received or deemed to possess been received in India by or on his behalf and income that accrues or arises or is deemed to accrue or arise in India is Taxable in India.
Important Section in the Income tax for International Taxation
- Section 9 of the tax Act, 1961 also envisages certain deeming provisions.
- NRI’s are taxed as per tax slabs applicable to resident Indians below the age of 60 years regardless of the age criteria of non-resident Indians. Simply means that if the NRI is above the age of 60 years still he will be taxed a per tax rate applicable to resident Indians who are below the age of 60 years.
- Section 115D deals with the Special provision for computation of total income of non-residents
- Section 115E – Tax on long-term capital and gains investment income.
- Section 115F – Mention of certain cases for the capital gains on transfer of foreign exchange assets are not to be charged.
- Section 115H – Mention of certain cases in which Benefits can be availed even after the assessee becomes resident.