1. Tax Rate for Dividend
The rate of tax imposed under section 5 on dividend received from a company shall be:-
| S.NO. | Dividend Type | Rate of Tax (%) |
|---|---|---|
| (a) | Dividends paid by Independent Power Purchasers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing (CPPA-G) or its predecessor or successor entity. | 7.5 |
| (b) | Mutual funds and cases other than those mentioned in clauses (a) and (c) | 15 |
| (c) | A person receiving dividend from a company where no tax payable by such company, due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III.] | 20 |
2. Tax Rate for Profit on Debt
The rate of tax imposed under section 5 on dividend received from a company shall be:-
| S.NO | Profit on Debt | Rate of Tax (%) |
|---|---|---|
| 1. | Where profit on debt does not exceed Rs.5,000,000. | 15 |
| 2. | Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000. | 17.5 |
| 3. | Where profit on debt exceeds Rs. 25,000,000 but does not exceed Rs. 36,000,000. | 20 |
3. Tax Rate for Royalty or Fee for Technical Services and Fee for Offshore Digital services
The tax rate imposed under section 6 on payments to non-residents shall be :-
| S.NO | Payment Type | Rate of Tax (%) |
|---|---|---|
| 1. | Gross amount of the royalty or fee for technical services | 15 |
| 2. | Gross amount of the fee for offshore digital services. | 5 |
4. Royalty Paid to Resident Persons
The rate of tax to be deducted under section 153B shall be :-
| S.NO | Payment Type | Rate of Tax (%) |
|---|---|---|
|
1. |
Gross amount of the royalty |
15 |
