Avoidance of income-tax by transactions resulting in transfer of income to non-residents

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..... r forthwith or in the future, any income of a non-resident person which, if it were income of the first-mentioned person, would be chargeable to income-tax, that income shall, whether it would or would not have been chargeable to income-tax apart from the provisions of this section, be deemed to be income of the first-mentioned person for all the purposes of this Act; ( b ) where, whether before or after any such transfer, any such first-mentioned person receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operations, then any income which, by virtue or in consequence of the transfer, either alone or in conjunction with associated operations, has become the inc .....

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..... re or have been transferred; ( b ) any body corporate incorporated outside India shall be treated as if it were a non-resident; ( c ) a person shall be deemed to have power to enjoy the income of a non-resident if- ( i ) the income is in fact so dealt with by any person as to be calculated at some point of time and, whether in the form of income or not, to enure for the benefit of the first-mentioned person in sub-section (1), or ( ii ) the receipt or accrual of the income operates to increase the value to such first-mentioned person of any assets held by him or for his benefit, or ( iii ) such first-mentioned person receives or is entitled to receive at any time any benefit provided or to be provided out of that income or ou .....

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..... irectly, the accumulations of income arising from any such assets ; ( c ) benefit includes a payment of any kind ; ( d ) capital sum means- ( i ) any sum paid or payable by way of a loan or repayment of a loan ; and ( ii ) any other sum paid or payable otherwise than as income, being a sum which is not paid or payable for full consideration in money or money's worth. ---------------------------- Notes :- 1. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI .....

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