Non-resident (External) Account exemption: interest credited to defined external accounts is not subject to TDS after amendment.

The amendment limited the non-deduction of tax at source to interest credited to Non-resident (External) Accounts as defined under foreign exchange law, replacing the broader category of non-resident account effective April 1, 1969; a government notification defined that account type and prior instructions exempting interest in non-resident accounts therefore now apply only to the defined Non-resident (External) Account while the Board considers the broader question of TDS applicability to incomes exempt under the income exemption provision.

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