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Direct Taxes and the Constitution of India

Taxguru | 04/02/2022 12:59 PM | Click to read full article

Direct taxes are taxes where the incidence and impact of taxation falls on the same entity. No direct taxes can be levied or collected in India unless it is explicitly and authorized by way of legislation.

By liberally interpreting section 9(1)(i) of the Income Tax Act, 1960, it was held that a non-resident is liable to pay tax on income deemed to accrue or arise in India by indirect transfer of a capital asset situated in India.