Amendment of section 196C.
87. In section 196C of the Income-tax Act,––
(a) for the words “in cash or by the issue of a cheque or draft or by any other mode”, the words “by any mode” shall be substituted;
(b) the proviso shall be omitted.
Notes on Clauses:
Clause 87 of the Bill seeks to amend section 196C of the Income-tax Act relating to income from foreign currency bonds or shares of Indian company.
The said section provides that 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.
It is proposed to amend said section so as to enable credit of income or payment thereof by any mode.
It is further proposed to omit the proviso to the said section.
These amendments will take effect from 1st April, 2020.
