Income Tax Act, 2025
Section 11: Ins. by Act 23 of 2012, s. 44 (w.e.f. 12012).
11. Ins. by Act 23 of 2012, s. 44 (w.e.f. 12012).
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(C) the amount of income-tax calculated on the income in respect of units referred to in
sub-clause (iii), if any, included in the total income, at the rate of twenty per cent; and
(D) the amount of income-tax with which he or it would have been chargeable had his or its
total income been reduced by the amount of income referred to in sub-clause (i), sub-clause (ii)
1[, sub-clause (iia)] 2[, sub-clause (iiaa)] 3[, sub-clause (iiab)] 4[, sub-clause (iiac)] and
sub-clause (iii);
(b) 5[a non-resident (not being a company) or a foreign company, includes any income by way of
royalty or fees for technical services other than income referred to in sub-section (1) of section 44DA]
received from Government or an Indian concern in pursuance of an agreement made by the foreign
company with Government or the Indian concern after the 31st day of March, 1976, and where such
agreement is with an Indian concern, the agreement is approved by the Central Government or where
it relates to a matter included in the industrial policy, for the time being in force, of the Government
of India, the agreement is in accordance with that policy, then, subject to the provisions of
sub-sections (1A) and (2), the income-tax payable shall be the aggregate of,—
6[(A) the amount of income-tax calculated on the income by way of royalty, if any, included
in the total income, at the rate of 7[ten per cent.];
(B) the amount of income-tax calculated on the income by way of fees for technical services,
if any, included in the total income, at the rate of 7[ten per cent.]; and]
(C) the amount of income-tax with which it would have been chargeable had its total income
been reduced by the amount of income by way of royalty and fees for technical services.
Explanation.—For the purposes of this section,—
(a) “fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii)
of sub-section (1) of section 9;
(b) “foreign currency” shall have the same meaning as in the Explanation below item (g) of
sub-clause (iv) of clause (15) of section 10;
(c) “royalty” shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of
section 9;
(d) “Unit Trust of India” means the Unit Trust of India established under the Unit Trust of India
Act, 1963 (52 of 1963).]
8[(1A) Where the royalty referred to in clause (b) of sub-section (1) is in consideration for the transfer
of all or any rights (including the granting of a licence) in respect of copyright in any book to an Indian
concern 9[or in respect of any computer software to a person resident in India], the provisions of
sub-section (1) shall apply in relation to such royalty as if the words 10[ 11[the agreement is approved by
the Central Government or where it relates to a matter] included in the industrial policy, for the time
being in force, of the Government of India, the agreement is in accordance with that policy] occurring in
the said clause had been omitted:
the amount of income-tax calculated on the income in respect of units referred to in
sub-clause
the amount of income-tax with which he or it would have been chargeable had his or its
total income been reduced by the amount of income referred to in sub-clause
1[, sub-clause
5[a non-resident (not being a company) or a foreign company, includes any income by way of
royalty or fees for technical services other than income referred to in sub-section
of section 44DA]
received from Government or an Indian concern in pursuance of an agreement made by the foreign
company with Government or the Indian concern after the 31st day of March, 1976, and where such
agreement is with an Indian concern, the agreement is approved by the Central Government or where
it relates to a matter included in the industrial policy, for the time being in force, of the Government
of India, the agreement is in accordance with that policy, then, subject to the provisions of
sub-sections
and
the amount of income-tax calculated on the income by way of royalty, if any, included
in the total income, at the rate of 7[ten per cent.];
the amount of income-tax calculated on the income by way of fees for technical services,
if any, included in the total income, at the rate of 7[ten per cent.]; and]
the amount of income-tax with which it would have been chargeable had its total income
been reduced by the amount of income by way of royalty and fees for technical services.
Explanation.—For the purposes of this section,—
“fees for technical services” shall have the same meaning as in Explanation 2 to clause
of sub-section
of section 9;
“foreign currency” shall have the same meaning as in the Explanation below item
of
sub-clause
of clause
of section 10;
“royalty” shall have the same meaning as in Explanation 2 to clause
of sub-section
of
section 9;
“Unit Trust of India” means the Unit Trust of India established under the Unit Trust of India
Act, 1963 (52 of 1963).]
8[
Where the royalty referred to in clause
of sub-section
is in consideration for the transfer
of all or any rights (including the granting of a licence) in respect of copyright in any book to an Indian
concern 9[or in respect of any computer software to a person resident in India], the provisions of
sub-section
shall apply in relation to such royalty as if the words 10[ 11[the agreement is approved by
the Central Government or where it relates to a matter] included in the industrial policy, for the time
being in force, of the Government of India, the agreement is in accordance with that policy] occurring in
the said clause had been omitted: