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 by the Finance Act, 1992, w.e.f. 1-6-1992. 2. Substituted for 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 by the Finance Act, 1993, w.e.f. 1-6-1993. 3. Substituted for bonds or shares by the Finance Act, 2001, w.e.f. 1-4-2002. 4. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. 5. Inserted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier the proviso was inserted by the Finance Act, 1997, w.e.f. 1-6-1997 and later on omitted by the Finance Act, 2002, w.e.f. 1-6-2002. 6. Substituted vide Finance Act, 2020 dated 27-03-2020 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 Finance Act, 2020 dated 27-03-2020 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 dated 16-08-2024 w.e.f. 23-07-2024 before it was read as, at the rate of ten per cent