Tax Glossary Definition
Refers to a non-resident individual or institutional investor permitted to make direct investments in listed Indian securities under SEBI and RBI guidelines. The income they earn is taxed according to the rules applicable to foreign investors.
Example: If a QFI earns ₹1,00,000 as dividend income from an Indian company, tax is deducted at source (TDS) at 10% in accordance with Section 196D of the Income Tax Act.
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