GAMMON INDIA LIMITED

V. Tax Deduction at Source
No income-tax is deductible at source from income by way of capital gains under the present provisions of
the IT Act, in case of residents. However, as per the provisions of section 195 of the IT Act, any sum ,
payable to non residents which is chargeable to tax under ITA (except long-term capital gains exempt
under section 10(38) of the IT Act), may fall within the ambit of with-holding tax provisions, subject to the
provisions of the relevant tax treaty. Accordingly income tax may have to be deducted at source in the case
of a non- resident at the rate under the domestic tax laws or under the tax treaty, whichever is beneficial to
the assessee unless a lower withholding tax certificate is obtained from the tax authorities
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