In case of foreign companies having branches in India, maximum deduction (in respect of head office expenditure) allowed in computing their income under section 44C is —

CS Executive · Tax Laws and Practice · PYQS · December 2014
In case of foreign companies having branches in India, maximum deduction (in respect of head office expenditure) allowed in computing their income under section 44C is —
(A) An amount equal to 5% of the adjusted total income
(B) An amount equal to 5% of the total income
(C) An amount equal to 15% of the adjusted total income
(D) An amount equal to 15% of the total income.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) An amount equal to 5% of the adjusted total income. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: Income Tax Act, 1961

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