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Taxation in Special Cases under Income Tax Act, 1961

Tax on Dividends Received From Specified Foreign Company [Section-115BBD]

  • Any Dividend [other than dividend U/s 2(22) (e)] received by an Indian company from a specified Foreign Company shall be chargeable to tax @ 15% (plus SC, and EC & SHEC as applicable).
  • “Specified foreign company” means a foreign company in which the Indian company holds not less than 26% of nominal value of Equity share capital.
  • No deduction under any provision shall be allowed from such dividends.

Income of a Sikkimese individuals[Sec 10(26AAA)]

The following income, which accrues or arise to a sikkimese individuals, would be exempt from income tax-

  • Income from any source in the State of Sikkim; or
  • Income by way of dividend or interest on securities. (Whether from source of Sikkim or outside.)

However, this exemption will not be available to a Sikkimese woman who, on or after 1st April, 2008, marries a non-sikkimese individuals. Sikkimese man will be eligible even if he marry non Sikkimese woman.

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