How foreign companies are taxed in India?

Foreign companies that have a Permanent Establishment (‘PE’) or Branch/ Project Office in India are taxable at the higher basic rate of 40%, which, with applicable surcharge and education cess, results in a rate of either 41.60, 42.43 or 43.68%. There is a Minimum Alternate Tax (‘MAT’) regime in India.

What is the rate of tax for foreign companies?

Corporate Tax Rate in India

What is foreign company under income tax Act?

Foreign company means a company which is not a domestic company, i.e. a company registered outside India in any other foreign country. The Foreign Company may be treated as Domestic Company if such company makes prescribed arrangement in India as per Rule 27.

Is foreign income taxable in India?

In case of RNOR individuals, the foreign income (i.e., income accrued outside India) shall not be taxable in India. Foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India).

What is minimum alternative tax India?

Minimum Alternate Tax is applied when the taxable income calculated according to the I-T Act provisions is found to be less than 15.5 per cent (plus surcharge and cess as applicable) of the book profit under the Companies Act, 2013.

Where do I show foreign income in ITR?

Foreign Income: An individual is required to disclose any income that he has earned abroad in the form of salary, house property, capital gains or any other sources in schedule FSI of ITR 2, along the details of the country in which such income is earned, tax payer identification number, the amount of tax paid in the …