TMI BlogIncome deemed to accrue or arise in India - “Through or from transfer of Capital Asset situated in India.” - Section 9(1)(i)X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer is within India or outside. Accordingly, the expression through shall mean and include and shall be deemed to have always meant and included by means of , in consequence of or by reason of . [Explanation 4, Section 9(1)(i)] Further, an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or * indirectly , its value substantially from the assets located in India. [Explanation 5, Section 9(1)(i)] Cases where an asset or capital asset held by a non-resident is not deemed to be situated in India- An as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot exceed the pro-rata share of the non-resident in the total consideration realized by the specified funds from the said transfer of shares or securities in India. It is further clarified that a non-resident investing directly in the specified funds shall continue to be taxed as per the extant provisions of the Act. Declaration of dividend by a foreign company [ Circular No. 4/2015 dated 26.03.2015 ] Declaration of dividend by such a foreign company outside India does not have the effect of transfer of any underlying assets located in India. It is therefore, clarified that the dividends declared and paid by a foreign company outside India in respect of shares which derive their value substantially from assets situated i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Where an asset or a capital asset, which is held by a non-resident by way of investment, directly or indirectly, in Category-I foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, made under the Securities and Exchange Board of India Act, 1992. Specified date: date on which the accounting period of the company or, as the case may be, the entity ends preceding the date of transfer of a share or an interest; or date of transfer, if the book value of the assets of the company or, as the case may be, the entity on the date of transfer exceeds the book value of the assets as on the date referred to in sub-clause (i), by fifteen per cent: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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