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

Tax computation for non-residents with interest, GDR dividends, and long-term capital gains under section 48 and rate changes

Where a non-resident's total income includes interest on specified Indian bonds purchased in foreign currency, dividends on Global Depository Receipts (GDRs) purchased in foreign currency through an approved intermediary, or long-term capital gains on their transfer, tax is computed by aggregating: (i) 10% tax on such interest or dividends; (ii) tax on long-term capital gains at 10% for transfers before 23-07-2024 and 12.5% for transfers on or after that date; and (iii) the tax payable on the balance of the income as if these amounts were excluded. Limited deductions apply where income consists only of such receipts, certain provisos to section 48 do not apply, and similar treatment applies on amalgamation.