Income-tax Act, 2025

Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer. - Section 209

Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.

209. (1) The income-tax payable, on the total income of an assessee, being a non- resident, which includes income specified in column B of the Table below, shall be the aggregate of income-tax computed at the rate specified in the column C applied on the corresponding income specified in column B.

TABLE

Sl. No.IncomeRate of income-tax payable

ABC

1.From interest on

(a) bonds of an Indian company issued as per such scheme as may be notified by the Central Government; or

(b) bonds of a public sector company sold by the Government,and purchased in foreign currency.

10%

2.From dividends on Global Depository Receipts

(a) issued as per such scheme as may be notified by the Central Government against the initial issue of shares of an Indian company and purchased in foreign currency through an approved intermediary; or

(b) issued against the shares of a public sector company sold by the Government and purchased by him in foreign currency through an approved intermediary; or

(c) issued or re-issued as per a scheme as may be notified by
the Central Government, against the existing shares of an Indian company
purchased in foreign currency through an approved intermediary.

10%

3.Long-term capital gains arising from the transfer of bonds referred
to against serial number 1 or Global Depository Receipts referred to
against serial number 2.12.5%

4.Total income as reduced by income referred to against serial numbers 1 to
3.Rates in force.

(2) Where the gross total income of the non-resident

(a) consists only of income by way of interest or dividends in respect of

(i) bonds referred to in sub-section (1) (Table: Sl. No. 1); or

(ii) Global Depository Receipts referred .... To read the full section download the app from Google Play store