TDS on foreign currency bonds and GDRs requires withholding on interest, dividends and long term capital gains per law. Section 196C requires deduction of tax at source on payments to non residents of interest on specified bonds, dividends on Global Depository Receipts and long term capital gains on transfer of those instruments. Tax must be deducted at the time of credit or payment, whichever is earlier. From 23 July 2024 the law sets a ten percent rate for interest and dividends on the specified instruments, and differentiates withholding rates for long term capital gains depending on whether the transfer occurred before or on/after 23 July 2024; before that date a ten percent rate applied generally.