Sec 195 and 115A

This query is : Resolved

anjali (Querist)
Follow

13 May 2009 Please tell me the similarity between the two sections i.e 115A and 195. Plz tell me which sec is applicable and how to decide the applicability of each

taxindiaconnect

taxindiaconnect (Expert)
Follow

13 May 2009 Section 115A provides the concessional rate on certain incomes of the non residents. For example the income of a non resident from royalty is taxed @ 10%
+ (SC and EC) under section 115A. while section 195 cast an obligation on the payer of the income to a non resident to deduct tax at source from the income. In the above expample since the income of the non resident is taxable at the prescribed rate u/s 115A, the payer has to deduct the tax at that rate u/s 195.