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.
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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).
Section 195A Income payable net of tax
Section 196A Income in respect of units of non-residents
Section 196B Income from units
Section 196C Income from foreign currency bonds or shares of Indian company
Section 196D Income of Foreign Institutional Investors from securities
Section 197 Certificate for deduction at lower rate
Section 197A No deduction to be made in certain cases
Section 198 Tax deducted is income received