Whether non-resident person (corporate as also non-corporate) owning 4 per cent National Defence Loan, 1968 and 43/4 per cent National Defence Loan, 1972, are entitled to receive interest thereon without deduction of tax at source

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..... National Defence Loan, 1968 and 43/4 per cent National Defence Loan, 1972, are entitled to receive interest thereon without deduction of tax at source 1. A question has arisen whether the provisions of paragraph 5 of the Ministry of Finance (Department of Economic Affairs) Notification No. 4(28) W&M/65, dated 19-10-1965, which lays down, inter alia, that non-residents will be exempt from tax unde .....

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..... nt National Defence Loan, 1972. As a corollary to this position non-resident persons (corporate as also non-corporate) owning these loans are entitled to receive the interest thereon without deduction of tax at source. 3. Resident persons are chargeable to income-tax on their income by way of interest on the above-mentioned loans. However clause (ia) of the proviso to section 193 exempts from ded .....

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..... e latter case, tax will be deductible at source under section 193 from the interest on these securities. 5. Where a foreign bank holding 4 per cent National Defence Loan, 1968, or 4 per cent National Defence Loan, 1972, claims that it is entitled to receive payment of the interest on these loans without deduction of tax at source, it will be required to furnish to the Public Debt Office a declara .....

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