CHAPTER XVII
COLLECTION AND RECOVERY OF TAX
Income from foreign currency bonds or shares of Indian company.
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 thereof1{by any mode}, whichever is earlier, deduct income-tax thereon 3.[(a) ten per cent. in respect of income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 115AC;
(b) ten per cent. in respect of long-term capital gains arising from transfer of such bond or Global Depository Receipts referred to in section 115AC which takes place before the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital gains arising from transfer of such bond or Global Depository Receipts referred to in section 115AC which takes place on or after the 23rd day of July, 2024]
2{Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O.}
NOTE-
Amendment
1 . Substituted by the Finance Act, 2020
in section 196C, for the figures and letters
in cash or by the issue of a cheque or draft or by any other mode
the following shall be substituted namely,
by any mode.
2. Omitted by the Finance Act, 2020
3. Substituted by Finance Bill 2024 dated 07.08.2024 w.e.f 23.07.2024
at the rate of ten per cent.
the following shall be substituted
(a) ten per cent. in respect of income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 115AC;
(b) ten per cent. in respect of long-term capital gains arising from transfer of such bond or Global Depository Receipts referred to in section 115AC which takes place before the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital gains arising from transfer of such bond or Global Depository Receipts referred to in section 115AC which takes place on or after the 23rd day of July, 2024.