Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer – Section 115AC - International Taxation - Income Tax

Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer Section 115AC Where the total income of an assessee, being a non-resident, includes - Nature of Income Rate of Tax (a) Income by way of interest on bonds of an Indian company or on bonds of a public sector company sold by the Government, and purchased by him in foreign currency, or 10% (b) Income by way of dividends on GDR 10% (c) Income by way of long-term capital gains arising from the transfer of bonds referred to in clause ( a ) or, Global Depository Receipts referred to in clause ( b ) 10% [ Upto 22.07.2024 ] 12.5% [ From 23.07.2024 ] [ Substituted vide Finance (No. 2) Act, 2024 ] (d) On the balance income included in total income Special/Normal rate, as the case may be Notes: No deduction of any expense or allowance: Where the GTI of a non-resident includes income only by way of interest on bonds then deduction u/s 28 to 44C and section 57(i) or (iii) shall not be allowed. Both provisos to section 48 shall not apply: Where the GTI of a non-resident includes income only by way of LTCG, then proviso 1 and 2 of section 48 shall not apply for computation of LTCG. Where the asessee acquired GDR or Bonds in an amalgamated or resulting company by virtue of his holding GDR or bonds in the amalgamating or demerged company, the concessional tax treatment would apply to such GDR or bonds. No deduction under chapter VI-A shall be allowed from such income by way of interest. No return is required to be submitted u/s 139(1) if the total of the assessee consist only of income by way of interest and TDS has been deducted from such income. Carry forward and set off losses allowed but set off of unabsorbed depreciation not allowed.