Section 196C - Income from foreign currency bonds or shares of Indian company - Income-tax Act, 1961

1 [Income from foreign currency bonds or shares of Indian company. 196C. 2 [ Where any income by way of interest or dividends in respect of 3 [ bonds or Global Depository Receipts ] referred to in section 115AC or by way of long-term capital gains arising from the transfer of such 4 [ 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 6 [ by any mode ] , whichever is earlier, deduct income-tax thereon 8 [ at the rate of (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. ] : 7 [ **** ] ***************** NOTES:- 1. Inserted vide Section 75 of the Finance Act, 1992 w.e.f. 01-06-1992 2. Substituted vide Section 27 of the Finance Act, 1993 w.e.f. 01-06-1993 before it was read as, Where any income by way of interest or dividends is payable in respect of bonds or shares referred to in section 115AC to a non-resident 3. Substituted vide Section 72 of the Finance Act, 2001 w.e.f. 01-04-2002 before it was read as, bonds or shares 4. Substituted vide Section 72 of the Finance Act, 2001 w.e.f. 01-04-2002 before it was read as, bonds or shares 5. Inserted vide Section 82 of the Finance Act, 2003 w.e.f. 01-04-2003 Earlier , Inserted vide Section 50 of the Finance Act, 1997 w.e.f. 01-06-1997 And was Omitted vide Section 83 of the Finance Act, 2002 w.e.f. 01-06-2002 before it was read as, Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O. 6. Substituted vide Section 88 of the Finance Act, 2020 w.e.f. 01-04-2020 before it was read as, in cash or by the issue of a cheque or draft or by any other mode 7. Omitted vide Section 88 of the Finance Act, 2020 w.e.f. 01-04-2020 before it was read as, 5 [Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O. ] 8. Substituted vide Section 64 of the Finance (No. 2) Act, 2024 w.e.f. 23-07-2024 before it was read as, at the rate of ten per cent