India: Tax residency certificate for claiming tax treaty benefits
Tax withheld at source under liberalised remittance scheme and overseas tour program package
Tax withheld at source under liberalised remittance scheme
The KPMG member firm in India prepared reports about recent tax developments (read more at the hyperlinks provided below).
- Tax residency certificate for claiming tax treaty benefits: The Ahmedabad Bench of the Income Tax Appellate Tribunal held that a tax residency certificate from the country of residence is an important document to be furnished for the claim of tax treaty benefits on the India tax return. Read a June 2023 report [PDF 418 KB] prepared by the KPMG member firm in India
- Tax withheld at source under liberalised remittance scheme and overseas tour program package: The Finance Act, 2023 amended provisions of section 206C(1G) whereby the rate of tax withheld at source was increased from 5% to 20% for the remittance under the liberalised remittance scheme (LRS) as well as for the purchase of overseas tour program package. Further, the threshold of INR 7 lakh for triggering tax withheld at source on LRS was removed. These amendments were to take effect from 1 July 2023. The Ministry of Finance also clarified various aspects of tax withheld at source applicability on LRS and overseas tour program package. Read a June 2023 report [PDF 216 KB] prepared by the KPMG member firm in India
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.