Income-tax Act, 1961Section 115A
- Dividend 20%; IFSC unit dividend 10%
- Foreign-currency loan interest 20%
- Royalty/FTS 20% (plus surcharge and cess)
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 115A
Non-residents & DTAASection 115A → Section 207
Tax on dividends, interest, royalty and FTS of non-residents and foreign companies
Section 115A of the old Income-tax Act, 1961 · new section 207 under the Income-tax Act, 2025
New reference Section 207
Income-tax Act, 2025Section 207
- Rates in a table in section 207
- Dividend 20%; IFSC dividend 10%; foreign currency interest 20%
- Royalty and fees for technical services in 207(2)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered and tabulated; rates unchanged.
Practice notes
- Treaty rates often lower; claim under section 159 with TRC.
Frequently asked
What is the tax on dividend for NRIs under the new Income Tax Act 2025?
20% under section 207 (10% for dividends from an IFSC unit), subject to lower treaty rates.
What is section 115A called in the new Income-tax Act, 2025?
Section 115A of the Income-tax Act, 1961 corresponds to Section 207 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 115A under the new Income Tax Act?
Renumbered and tabulated; rates unchanged.
Is section 115A still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115A of the 1961 Act. Section 207 of the 2025 Act applies from tax year 2026-27.