Comparison of Section 209 "Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....9 of the Income-tax Act, 2025 as enacted. Both provisions impose special tax treatment for non-residents on income from certain bonds and Global Depository Receipts (GDRs) purchased in foreign currency and on capital gains arising on their transfer. The changes between the Bill and the enacted Section are primarily textual, reference-based and procedural in nature; they affect computation wording, cross-references to other sections, and a minor definitional cross-reference. Affected parties: non-resident investors, financial intermediaries (approved intermediaries), Indian issuing companies and tax administration. Effective date or enactment date: Not stated in the document. Background & Scope Statutory hook: Clause/Section 209, appearing....

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....ed/re-issued under notified schemes and purchased in foreign currency through an approved intermediary - taxed at 10%. * Long-term capital gains on transfer of the bonds or GDRs referred to above - taxed at 12.5%. * The remainder: total income as reduced by the incomes in items 1-3 - in the enacted section described as "Rates in force"; in the Bill as "Income-tax chargeable on such income." Interpretation The enacted text frames the tax liability of a non-resident as "the aggregate of income-tax computed at the rate specified in column C applied on the corresponding income specified in column B." This language emphasises a rate-applied computation for each head listed. The Bill phrasing (aggregate of the amounts mentioned in column C)....

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.... grossing up, surcharges or cesses apply beyond the stated rate. * Example 2: A non-resident sells long-term GDRs (acquired in foreign currency through an approved intermediary) and realises capital gain Y. The long-term capital gain is taxed at 12.5% as per item 3. Not stated in the document whether indexation or specific computation method for capital gain is modified beyond the exclusion of section 72(6). Interplay The enacted section cross-references other statutory provisions: Chapters and sections governing deductions (Sections 28-58, 60, 61), Chapter VIII deductions, section 72(6) (specifically excluded), the return filing provision referenced (section 263(1) in the texts), Chapter XIX-B (TDS provisions) and the definition of GDR....

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....ition cross-reference for "Global Depository Receipts" Cross-refers to section 190(4)(a). Cross-refers to section 193(4)(a). depends on the substantive definitions in those sections-Not stated in the document. Minor drafting/typo corrections Contains editorial notes/corrections in the Bill (e.g., "as per with" corrected to "as per"). Polished enacted language ("as may be notified by the Central Government"). reduces ambiguity; no substantive policy change apparent from document. Practical Implications * Compliance and risk areas: Non-resident taxpayers receiving the enumerated incomes must ensure correct application of the specified rates (10% for interest/dividend; 12.5% for long-term capital gains) and must verify whether....