{
  "@context": "https://schema.org",
  "@type": "Dataset",
  "name": "Indian tax facts for foreign companies — ProgressiveDisclosures",
  "description": "Dated, sourced statements of Indian tax law affecting foreign companies, with old-to-new citation mapping for the Income-tax Act 2025 renumbering. Every claim carries the date it was last confirmed and the date it must be re-checked.",
  "url": "https://progressivedisclosures.com/facts.json",
  "dateModified": "2026-08-14",
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "creator": {
    "@type": "Organization",
    "name": "ProgressiveDisclosures",
    "url": "https://progressivedisclosures.com/"
  },
  "isAccessibleForFree": true,
  "facts": [
    {
      "id": "act-2025-in-force",
      "claim": "The Income-tax Act 2025 replaced the Income-tax Act 1961 with effect from 1 April 2026, reducing 819 sections to 536 and renumbering almost everything.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "act": "Income-tax Act 2025"
      },
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-02-01",
      "sources": [
        {
          "url": "https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248005",
          "publisher": "PIB",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://www.incometaxindia.gov.in/w/income-tax-act-2025-comes-into-force-from-1st-april-2026",
          "publisher": "Income Tax Department",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "tds-nonresident-section",
      "claim": "TDS on payments to non-residents is governed by section 393(2), Table S. No. 17 of the Income-tax Act 2025. It was section 195 of the Income-tax Act 1961.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "act": "Income-tax Act 2025",
        "section": "393(2)",
        "detail": "Table S. No. 17",
        "supersedes": {
          "act": "Income-tax Act 1961",
          "section": "195",
          "governsPeriodsUpTo": "2026-03-31"
        }
      },
      "supersedes": {
        "act": "Income-tax Act 1961",
        "section": "195",
        "governsPeriodsUpTo": "2026-03-31"
      },
      "confidence": "primary",
      "confidenceMeans": "Read against the statutory, notification or judgment text itself, with the operative words quoted. The strongest grade we issue.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-12",
      "mustRecheckBy": "2027-04-01",
      "sources": [
        {
          "url": "https://indiankanoon.org/doc/116609761/",
          "publisher": "Indian Kanoon — statutory text of s.393, Income Tax Act 2025",
          "retrieved": "2026-08-12"
        },
        {
          "url": "https://www.india-briefing.com/news/section-393-income-tax-act-2025-tds-rules-rates-compliance-guide-44450.html/",
          "publisher": "India Briefing",
          "retrieved": "2026-08-12"
        },
        {
          "url": "https://taxgarden.in/blog/tds-on-non-residents-section-195-393-guide-india-fy-2026-27",
          "publisher": "Tax Garden",
          "retrieved": "2026-08-12"
        }
      ]
    },
    {
      "id": "royalty-fts-rate-section",
      "claim": "Rates on royalty and fees for technical services paid to non-residents and foreign companies sit at section 207 of the Income-tax Act 2025. It was section 115A of the Income-tax Act 1961.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "act": "Income-tax Act 2025",
        "section": "207",
        "supersedes": {
          "act": "Income-tax Act 1961",
          "section": "115A",
          "governsPeriodsUpTo": "2026-03-31"
        }
      },
      "supersedes": {
        "act": "Income-tax Act 1961",
        "section": "115A",
        "governsPeriodsUpTo": "2026-03-31"
      },
      "confidence": "single",
      "confidenceMeans": "One source only. Publishable only with visible hedging.",
      "hedge": "One search pass only. Confirm against the Act text before this appears without qualification.",
      "caveat": null,
      "lastConfirmed": "2026-08-12",
      "mustRecheckBy": "2026-09-12",
      "sources": [
        {
          "url": "https://www.taxtmi.com/tmi_notes?id=1657",
          "publisher": "TaxTMI",
          "retrieved": "2026-08-12"
        }
      ]
    },
    {
      "id": "royalty-fts-rate-value",
      "claim": "The base rate on royalty and fees for technical services paid to a foreign company is 20%, raised from 10% by the Finance Act 2023.",
      "effectiveFrom": "2023-04-01",
      "citation": null,
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-02-15",
      "sources": [
        {
          "url": "https://www.bdo.global/en-gb/insights/tax/world-wide-tax/india-withholding-tax-rate-on-royalties-and-fees-for-technical-services-doubles",
          "publisher": "BDO",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://www.incometaxindia.gov.in/w/section-115a-40",
          "publisher": "Income Tax Department",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "treaty-declaration-form",
      "claim": "The declaration filed on the Indian income-tax portal to claim treaty relief is Form 41, notified under the Income-tax Rules 2026 (Notification 22/2026 of 20 March 2026). It replaced Form 10F.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "instrument": "Income-tax Rules 2026",
        "notification": "22/2026",
        "notificationDate": "2026-03-20",
        "supersedes": {
          "form": "Form 10F"
        },
        "form": "Form 41"
      },
      "supersedes": {
        "form": "Form 10F"
      },
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-02-01",
      "sources": [
        {
          "url": "https://www.india-briefing.com/news/form-41-trc-dtaa-relief-guide-india-income-tax-act-2025-43841.html/",
          "publisher": "India Briefing",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://www.taxscan.in/top-stories/from-form10f-to-form41-indias-new-incometax-dtaa-compliance-era-1445266",
          "publisher": "Taxscan",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "quarterly-tds-return-form",
      "claim": "The quarterly TDS return for payments to non-residents is Form 144 under the Income-tax Act 2025. It replaced Form 27Q.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "supersedes": {
          "form": "Form 27Q"
        },
        "form": "Form 144",
        "act": "Income-tax Act 2025"
      },
      "supersedes": {
        "form": "Form 27Q"
      },
      "confidence": "single",
      "confidenceMeans": "One source only. Publishable only with visible hedging.",
      "hedge": "One source. Not yet on any public page.",
      "caveat": null,
      "lastConfirmed": "2026-08-12",
      "mustRecheckBy": "2026-09-12",
      "sources": [
        {
          "url": "https://taxfetchindia.com/blog/taxation-time/form-144-tds-non-resident-payments-guide",
          "publisher": "TaxFetch",
          "retrieved": "2026-08-12"
        }
      ]
    },
    {
      "id": "engineering-analysis-final",
      "claim": "The Supreme Court of India dismissed the Revenue's review petitions in Engineering Analysis Centre of Excellence v. CIT on 11 May 2026. The holding that payments for standard, off-the-shelf software are not royalties has attained finality.",
      "effectiveFrom": "2026-05-11",
      "citation": {
        "case": "Engineering Analysis Centre of Excellence Pvt Ltd v. CIT",
        "court": "Supreme Court of India",
        "reviewDismissed": "2026-05-11"
      },
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-05-01",
      "sources": [
        {
          "url": "https://www.dmd.law/news/supreme-court-dismisses-revenue-departments-review-petition-in-engineering-analysis-issue-attains-finality/",
          "publisher": "DMD Advocates",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://www.taxmann.com/post/blog/sc-dismissed-review-petition-against-ruling-that-sum-paid-towards-sale-of-computer-software-not-taxable-as-royalty",
          "publisher": "Taxmann",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "tds-no-threshold",
      "claim": "There is no minimum threshold for TDS on payments to non-residents. The obligation applies from the first rupee where the payment is chargeable to tax in India.",
      "effectiveFrom": null,
      "citation": null,
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-04-01",
      "sources": [
        {
          "url": "https://cleartax.in/s/section-195",
          "publisher": "ClearTax",
          "retrieved": "2026-08-12"
        },
        {
          "url": "https://www.winvesta.in/blog/businesses/section-195-tds-on-foreign-payments-the-complete-compliance-guide-for-indian-businesses-in-2026",
          "publisher": "Winvesta",
          "retrieved": "2026-08-12"
        }
      ]
    },
    {
      "id": "oidar-no-threshold",
      "claim": "A supplier outside India providing online information and database access or retrieval services to a non-taxable online recipient in India must register for GST irrespective of turnover. There is no threshold.",
      "effectiveFrom": null,
      "citation": {
        "act": "CGST Act 2017",
        "section": "24(xi)",
        "readWith": "IGST Act 2017 s.14"
      },
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": null,
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-04-01",
      "sources": [
        {
          "url": "https://www.india-briefing.com/news/oidar-compliance-india-gst-registration-ntor-gstr5a-digital-tax-43951.html/",
          "publisher": "India Briefing",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://tutorial.gst.gov.in/userguide/returns/GSTR-5A_faq.htm",
          "publisher": "GST portal",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "gst-demand-provision",
      "claim": "Section 74A of the CGST Act governs demands for FY 2024-25 onwards, replacing the separate section 73 and section 74 tracks. Pre-notice payment of tax and interest on the non-fraud track carries nil penalty; post-notice the window is 60 days.",
      "effectiveFrom": "2024-04-01",
      "citation": {
        "act": "CGST Act 2017",
        "section": "74A",
        "insertedBy": "Finance (No. 2) Act 2024"
      },
      "supersedes": null,
      "confidence": "sourced",
      "confidenceMeans": "Two or more independent secondary sources agree. Good enough to publish with the citation shown.",
      "hedge": null,
      "caveat": "s.74A(11) preserves the penalty where self-assessed tax, or tax collected as tax, is unpaid more than 30 days. Non-registration alone is not a deeming provision for suppression.",
      "lastConfirmed": "2026-08-09",
      "mustRecheckBy": "2027-04-01",
      "sources": [
        {
          "url": "https://cleartax.in/s/section-74a-vs-73-vs-74-of-cgst-act",
          "publisher": "ClearTax",
          "retrieved": "2026-08-09"
        },
        {
          "url": "https://www.indiacode.nic.in/indiacode/bitstream/123456789/15689/1/A2017-12.pdf",
          "publisher": "India Code (CGST Act text)",
          "retrieved": "2026-08-09"
        }
      ]
    },
    {
      "id": "remittance-certificate-forms",
      "claim": "The forms accompanying a foreign remittance are Form 145 (replacing Form 15CA) and Form 146 (replacing Form 15CB) under the Income-tax Act 2025, required where remittances exceed ₹5 lakh in aggregate per payee per financial year.",
      "effectiveFrom": "2026-04-01",
      "citation": {
        "act": "Income-tax Act 2025",
        "form": "Form 145 / Form 146",
        "supersedes": {
          "form": "Form 15CA / Form 15CB"
        }
      },
      "supersedes": {
        "form": "Form 15CA / Form 15CB"
      },
      "confidence": "single",
      "confidenceMeans": "One source only. Publishable only with visible hedging.",
      "hedge": "One search pass. The ₹5 lakh threshold and the pairing need confirming against the Rules before this is stated to a client — it decides whether a CA certificate is needed on a given remittance.",
      "caveat": null,
      "lastConfirmed": "2026-08-12",
      "mustRecheckBy": "2026-09-12",
      "sources": [
        {
          "url": "https://taxgarden.in/blog/tds-on-non-residents-section-195-393-guide-india-fy-2026-27",
          "publisher": "Tax Garden",
          "retrieved": "2026-08-12"
        }
      ]
    }
  ]
}