Income from foreign currency bonds or shares of Indian company.

6[Where any income by way of interest or dividends in respect of 7[bonds or Global Depository Receipts] referred to in section 115AC or by way of long-term capital gains arising from the transfer of such 7[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.]:

8[Provided that no such deduction shall be made in respect of any dividends referred to in section 115-O.]

¹ Ins. by Act 32 of 2003, s. 81 (w.e.f. 1-4-2003). Earlier the proviso omitted by Act 20 of 2002, s. 82 (w.e.f.1-6-2002) which was inserted by Act 27 of 1999, s. 75 (w.e.f.1-6-1999).

² Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 1-4-2013).

³ Ins. by Act 49 of 1991, s. 58 (w.e.f. 1-10-1991).

⁴ Subs. by Act 38 of 1993, s. 26, for “Where any income is payable in respect of units referred to in section 115AB to an Offshore Fund” (w.e.f. 1-6-1993).

⁵ Ins. by Act 18 of 1992, s. 75 (w.e.f. 1-6-1992).

⁶ 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).

⁷ Subs. by Act 14 of 2001, s. 72, for “bonds or shares” (w.e.f. 1-4-2002).

⁸ 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).