Dividend given to non-residents can’t be taxed at rates higher than DTAA, rules Bombay High Court; Know what it means for NRIs

The Bombay High Court has delivered a significant ruling on dividend taxation for foreign companies. Dividends paid by Indian subsidiaries to their non-resident shareholders are now confirmed to be governed by the India-UK Double Taxation Avoidance Agreement. This means India cannot tax these dividends beyond the rates stipulated in the treaty.