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5.6. Qualification of Specific Income Categories for Tax Purposes

Dividend Income

The term “dividend” includes distribution of profits based on equity holdings by a company to its shareholders. In case any stock dividends are declared, the same are treated as not taxable.

Interest Income

Interest income includes interest on loans, deposits, bonds, securities, debentures, premiums and all other debt securities issued by companies and government organisations.

Royalty Income

The term “Royalty” includes sale or grant of operating licenses, patent, trademarks, processes or manufacturing formulas and other similar rights or remuneration for services of any kind. It also includes payments for the use or the right to use  industrial, commercial and scientific equipment.