What is Income from foreign currency bonds or shares of Indian company Income of Foreign Institutional Investors from securities? Section 196C and 196D of Income Tax Act 1961

Income from foreign currency bonds or shares of Indian company and Income of Foreign Institutional Investors from securities are defined under section 196C and 196D of Income Tax Act 1961. Provisions under these Sections are :

Section 196C of Income Tax Act "Income from foreign currency bonds or shares of Indian company"

Section 196C. Where any income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 115AC or by way of long-term capital gains arising from the transfer of such bonds or Global Depository Receipts is payable to a non-resident, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent :

Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O.

Section 196D of Income Tax Act "Income from foreign currency bonds or shares of Indian company"

 

Section 196D. (1) Where any income in respect of securities referred to in clause (a) of sub-section (1) of section 115AD, not being income by way of interest referred to in section 194LD, is payable to a Foreign Institutional Investor, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of twenty per cent :

Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O.

(2) No deduction of tax shall be made from any income, by way of capital gains arising from the transfer of securities referred to in section 115AD, payable to a Foreign Institutional Investor.

Home     About Us     Privacy Policy     Disclaimer     Sitemap