Rationalisation of the provision concerning withholding on payment made to Foreign Institutional Investors (FIIs)

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Full Text of the Document

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....tion of tax on income of FII from securities as referred to in clause (a) of sub-section (1) of section 115AD of the Act (other than interest referred in section 194LD of the Act) at the rate of 20 per cent. Since the said section provides for TDS at a specific rate indicated therein, the deduction is to be made at that rate and the benefit of agreement under section 90 or section 90A of the Act ....