Section 196C:
Income from foreign currency bonds or shares of Indian company.
1,2
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 3
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 in cash
or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon
at the rate of ten per cent.:
4
Provided that no such deduction shall be made in respect of any dividends referred to in
section 115-O.
Notes:
1. Ins. by Act 18 of 1992, s. 75 (w.e.f. 1-6-1992).
2. Subs. by Act 38 of 1993, s. 27, 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” (w.e.f. 1-6-1993).
3. Subs. by Act 14 of 2001, s. 72, for “bonds or shares” (w.e.f. 1-4-2002).
4. Ins. by Act 32 of 2003, s. 82 (w.e.f. 1-4-2003). Earlier the proviso was omitted by Act 20 of 2002, s. 83 (w.e.f. 1-6-2002)
which was inserted by Act 26 of 1997, s. 50 (w.e.f. 1-6-1997).