Clause 43 - Amendment of section 194LC - Finance Bill, 2013

Amendment of section 194LC 43. In section 194LC of the Income-tax Act, in sub-section (2) with effect from the 1st day of June,2013, (a) after sub-clause (ii) and before the Explanation, the following proviso shall be inserted, namely: Provided that where a non-resident (not being a company) or a foreign company has deposited any sum of money in foreign currency in a designated account through which such sum, as converted in rupees, is utilised by the non-resident or the foreign company, as the case may be, to subscribe to any long-term infrastructure bonds issued by the specified company in India, then, such borrowing, for the purposes of this section, shall be deemed to have been made by the specified company in foreign currency. ; (b) in the Explanation, clause (a) shall be renumbered as clause (aa) thereof and before the clause as so renumbered, the following clause shall be inserted, namely:- (a) designated account means an account of a person in a bank which has been opened solely for the purpose of deposit of money in foreign currency and utilisation of such money for payment to the specified company for subscription in the long-term infrastructure bonds issued by it; .