Whether non-resident person (corporate as also non-corporate) owning 4 per cent National Defence Loan, 1968 and 43/4 per cent National Defence Loan, 1972, are entitled to receive interest thereon without deduction of tax at source

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....e as also non-corporate) owning 4 per cent National Defence Loan, 1968 and 43/4 per cent National Defence Loan, 1972, are entitled to receive interest thereon without deduction of tax at source 1. A question has arisen whether the provisions of paragraph 5 of the Ministry of Finance (Department of Economic Affairs) Notification No. 4(28) W&M/65, dated 19-10-1965, which lays down, inter alia, th....

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....r cent National Defence Loan, 1968 and 4 per cent National Defence Loan, 1972. As a corollary to this position non-resident persons (corporate as also non-corporate) owning these loans are entitled to receive the interest thereon without deduction of tax at source. 3. Resident persons are chargeable to income-tax on their income by way of interest on the above-mentioned loans. However clause (i....

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....an an individual (e.g., a resident company). In the latter case, tax will be deductible at source under section 193 from the interest on these securities. 5. Where a foreign bank holding 4 per cent National Defence Loan, 1968, or 4 per cent National Defence Loan, 1972, claims that it is entitled to receive payment of the interest on these loans without deduction of tax at source, it will be req....