Income from units of mutual fund

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samir ghosh (Querist)
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02 September 2011 Sir,
as per sec 10(35) of income tax act income derived from units of mutual fund referred to u/s 10(23D)is exempt from income tax.

Then as per sec 115A how it can be chargeable to tax at the rate 20% in case of non resident .

I am confused about the contradiction of these two sections. plz clarify.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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02 September 2011 The provisions of Indian Income Tax is applicable to Indian Residents and if the foreign nations invest in India that does not give them the status of Resident and accordingly they are chargeable to tax.

Likewise if dividend received by an Indian from Indian Companies then it is exempted but the section has not included the dividend received from foreign companies and accordingly an Indian receiving dividend from a foreign company in India is taxable.

What you can do the Act is the supreme and you have to go by it. In the act each word has a specific meaning and this is the reason that every person who is reading the act interpretative in any manner he likes and suitable to him