1.
(1) This Act may be called the Direct Taxes Code, 2010.
(2) It extends to the whole of India.
(3) Save as otherwise provided in this Code, it shall come into force on the 1st day of April, 2012.
INCOME-TAX
(1) In accordance with the provisions of this Code, every person shall be liable to pay income-tax in respect of his total income of the financial year.
(2) Subject to the provisions of this Code, income-tax, including additional income-tax, shall be charged in respect of the total income of a financial year of every person.
(3) Where the income-tax referred to in sub-section (2) is to be charged in respect of the income of a period other than the financial year, the income-tax for such period shall be charged accordingly.
(4) The income-tax referred to in sub-section (2) shall be charged at the rate specified in the First Schedule in the manner provided therein.
(5) In respect of the income chargeable under sub-section (2), income tax shall be deducted or collected at source or paid in advance, in accordance with the provisions of this Code.
(6) The chargeability of income-tax on the income of a financial year under the foregoing provisions shall be determined in accordance with the provisions of this Code as they stand on the 1st day of April of that financial year.
3.
(1) Subject to the provisions of this Code, the total income of any financial year of a person, who is a resident, shall include all income from whatever source derived which—
(a) accrues, or is deemed to accrue, to him in India during the year;
(b) accrues to him outside India during the year;
(c) is received, or is deemed to be received, by him, or on his behalf, in India during the year; or
(d) is received by him, or on his behalf, outside India during the year.
(2) Subject to the provisions of this Code, the total income of any financial year of a person, who is a non-resident, shall include all income from whatever source derived which—
(a) accrues, or is deemed to accrue, to him in India during the year; or
(b) is received, or is deemed to be received, by him, or on his behalf, in India during the year.
(3) Any income which accrues to a resident outside India during the year, or is received outside India during the year by, or on behalf of, such resident, shall be included in the total income of the resident, whether or not such income has been charged to tax outside India.
4. (1)
An individual shall be resident in India in any financial year, if he is in India—
(a) for a period, or periods, amounting in all to one hundred and eighty-two days or more in that year; or
(b) for a period, or periods, amounting in all to—
(i) sixty days or more in that year; and
(ii) three hundred and sixty-five days or more within the four years immediately preceding that year.
(2) The provisions of clause (b) of sub-section (1) shall not apply in respect of an individual who is—
(a) a citizen of India and who leaves India in that year as a member of the crew of an Indian ship; or
(b) a citizen of India and who leaves India in that year for the purposes of employment outside India.
(3) A company shall be resident in India in any financial year, if—
(a) it is an Indian company; or
(b) its place of effective management, at any time in the year, is in India.
(4) Every other person shall be resident in India in any financial year, if the place of control and management of its affairs, at any time in the year, is situated wholly, or partly, in India.
5.
(1) The income shall be deemed to accrue in India, if it accrues, whether directly or indirectly, through or from:
(a) any business connection in India;
(b) any property in India;
(c) any asset or source of income in India; or
(d) the transfer of a capital asset situated in India.
(2) Without prejudice to the generality of the provisions of sub-section (1), the following income shall be deemed to accrue in India, namely:—
(a) income from employment, if it is for–
(i) service rendered in India;
(ii) service rendered outside India by a citizen of India and the income is receivable from the Government; or
(iii) the rest period, or leave period, which precedes, or succeeds, the period of service rendered in India and forms part of the service contract of employment;
(b) any dividend paid by a domestic company outside India;
(c) any insurance premium including re-insurance premium accrued from or payable by any resident or non-resident in respect of insurance covering any risk in India;
(d) interest accrued from or payable by any resident or the Government;
(e) interest accrued from or payable by any non-resident, if the interest is in respect of any debt incurred and used for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(f) royalty accrued from or payable by any resident or the Government;
(g) royalty accrued from or payable by a non-resident, if the royalty is for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(h) fees for technical services accrued from or payable by any resident or the Government;
(i) fees for technical services accrued from or payable by any non-resident, in respect of services utilised for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(j) transportation charges accrued from or payable by any resident or the Government;
(k) transportation charges accrued from or payable by any non-resident, if the transportation charges are in respect of the carriage to, or from, a place in India.
(1) This Act may be called the Direct Taxes Code, 2010.
(2) It extends to the whole of India.
(3) Save as otherwise provided in this Code, it shall come into force on the 1st day of April, 2012.
INCOME-TAX
BASIS OF CHARGE
2.(1) In accordance with the provisions of this Code, every person shall be liable to pay income-tax in respect of his total income of the financial year.
(2) Subject to the provisions of this Code, income-tax, including additional income-tax, shall be charged in respect of the total income of a financial year of every person.
(3) Where the income-tax referred to in sub-section (2) is to be charged in respect of the income of a period other than the financial year, the income-tax for such period shall be charged accordingly.
(4) The income-tax referred to in sub-section (2) shall be charged at the rate specified in the First Schedule in the manner provided therein.
(5) In respect of the income chargeable under sub-section (2), income tax shall be deducted or collected at source or paid in advance, in accordance with the provisions of this Code.
(6) The chargeability of income-tax on the income of a financial year under the foregoing provisions shall be determined in accordance with the provisions of this Code as they stand on the 1st day of April of that financial year.
3.
(1) Subject to the provisions of this Code, the total income of any financial year of a person, who is a resident, shall include all income from whatever source derived which—
(a) accrues, or is deemed to accrue, to him in India during the year;
(b) accrues to him outside India during the year;
(c) is received, or is deemed to be received, by him, or on his behalf, in India during the year; or
(d) is received by him, or on his behalf, outside India during the year.
(2) Subject to the provisions of this Code, the total income of any financial year of a person, who is a non-resident, shall include all income from whatever source derived which—
(a) accrues, or is deemed to accrue, to him in India during the year; or
(b) is received, or is deemed to be received, by him, or on his behalf, in India during the year.
(3) Any income which accrues to a resident outside India during the year, or is received outside India during the year by, or on behalf of, such resident, shall be included in the total income of the resident, whether or not such income has been charged to tax outside India.
4. (1)
An individual shall be resident in India in any financial year, if he is in India—
(a) for a period, or periods, amounting in all to one hundred and eighty-two days or more in that year; or
(b) for a period, or periods, amounting in all to—
(i) sixty days or more in that year; and
(ii) three hundred and sixty-five days or more within the four years immediately preceding that year.
(2) The provisions of clause (b) of sub-section (1) shall not apply in respect of an individual who is—
(a) a citizen of India and who leaves India in that year as a member of the crew of an Indian ship; or
(b) a citizen of India and who leaves India in that year for the purposes of employment outside India.
(3) A company shall be resident in India in any financial year, if—
(a) it is an Indian company; or
(b) its place of effective management, at any time in the year, is in India.
(4) Every other person shall be resident in India in any financial year, if the place of control and management of its affairs, at any time in the year, is situated wholly, or partly, in India.
5.
(1) The income shall be deemed to accrue in India, if it accrues, whether directly or indirectly, through or from:
(a) any business connection in India;
(b) any property in India;
(c) any asset or source of income in India; or
(d) the transfer of a capital asset situated in India.
(2) Without prejudice to the generality of the provisions of sub-section (1), the following income shall be deemed to accrue in India, namely:—
(a) income from employment, if it is for–
(i) service rendered in India;
(ii) service rendered outside India by a citizen of India and the income is receivable from the Government; or
(iii) the rest period, or leave period, which precedes, or succeeds, the period of service rendered in India and forms part of the service contract of employment;
(b) any dividend paid by a domestic company outside India;
(c) any insurance premium including re-insurance premium accrued from or payable by any resident or non-resident in respect of insurance covering any risk in India;
(d) interest accrued from or payable by any resident or the Government;
(e) interest accrued from or payable by any non-resident, if the interest is in respect of any debt incurred and used for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(f) royalty accrued from or payable by any resident or the Government;
(g) royalty accrued from or payable by a non-resident, if the royalty is for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(h) fees for technical services accrued from or payable by any resident or the Government;
(i) fees for technical services accrued from or payable by any non-resident, in respect of services utilised for the purposes of—
(i) a business carried on by the non-resident in India; or
(ii) earning any income from any source in India;
(j) transportation charges accrued from or payable by any resident or the Government;
(k) transportation charges accrued from or payable by any non-resident, if the transportation charges are in respect of the carriage to, or from, a place in India.
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