Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Income Tax Implication on Specified Transactions

Under the Income-tax Act, 2025, which of the following persons is included in 'person located in a notified jurisdictional area'?

A permanent establishment in the notified jurisdictional area, of a person who is neither resident of nor established in that area, is included. The definition covers residents, non-individuals established there, and such permanent establishments, not merely bank accounts, citizenship or remittances.

  1. AA permanent establishment, in the notified area, of a person who is neither resident nor established thereCorrect
  2. BAn Indian resident who merely holds a bank account in the notified area
  3. CAn individual who is only a citizen of the notified country but lives in India
  4. DA person who has made a one-time remittance to the notified area

Explanation

Section 176(6)(a) includes (i) a resident of the notified area, (ii) a non-individual established there, and (iii) a permanent establishment in the notified area of a person not covered by (i) or (ii). Holding an account, citizenship alone, or a single remittance does not meet any of these limbs.

Did you get it right without looking?

One question tells you little. A timed set on Income Tax Implication on Specified Transactions shows your real accuracy, how long you take and where you lose marks.

Practise Income Tax Implication on Specified TransactionsFree diagnostic mock

More Income Tax Implication on Specified Transactions questions