India - Income Tax Act 2010 - Saarc

1.551 CH. XII - DETERMINATION OF TAX IN CERTAIN SPECIAL CASES S. 115AC(a) income by way of interest on bonds of an Indian company issued inaccordance with such scheme as the Central Government may, bynotification in the Official Gazette 5 , specify in this behalf, or on bondsof a public sector company sold by the Government, and purchasedby him in foreign currency; or(b) income by way of dividends 6 [, other than dividends referred to insection 115-O,] on Global Depository Receipts—(i) issued in accordance with such scheme as the CentralGovernment may, by notification in the Official Gazette 7 , specifyin this behalf, against the initial issue of shares of an Indiancompany and purchased by him in foreign currency through anapproved intermediary; or(ii) issued against the shares of a public sector company sold by theGovernment and purchased by him in foreign currency throughan approved intermediary; or(iii) 8 [issued or] re-issued in accordance with such scheme as theCentral Government may, by notification in the Official Gazette 7 ,specify in this behalf, against the existing shares of an Indiancompany purchased by him in foreign currency through anapproved intermediary; or(iv) 9 [***](c) income by way of long-term capital gains arising from the transfer ofbonds referred to in clause (a) or, as the case may be, GlobalDepository Receipts referred to in clause (b),the income-tax payable shall be the aggregate of—(i) the amount of income-tax calculated on the income by way of interestor dividends 10 [, other than dividends referred to in section 115-O] , asthe case may be, in respect of bonds referred to in clause (a) or GlobalDepository Receipts referred to in clause (b), if any, included in thetotal income, at the rate of ten per cent;5. See Issue of Foreign Currency Exchangeable Bonds Scheme, 2008/Issue of ForeignCurrency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism)Scheme, 1993. For text of Schemes, see Taxmann’s Income-tax Rules.6. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. Earlier the words “, other than dividendsreferred to in section 115-O,” were omitted by the Finance Act, 2002, w.e.f. 1-4-2003.7. See Issue of Foreign Currency Exchangeable Bonds Scheme, 2008/Issue of ForeignCurrency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism)Scheme, 1993. For text of Schemes, see Taxmann’s Income-tax Rules.8. Inserted by the Finance Act, 2002, w.e.f. 1-4-2002.9. Omitted, ibid. Prior to its omission, clause (iv) read as under :“(iv) issued in accordance with such scheme as the Central Government may, bynotification in the Official Gazette, specify in this behalf, and purchased by him inforeign currency through an approved intermediary, against the shares of an Indiancompany arising out of disinvestment by such company in its subsidiary company,and the shares of both such Indian companies are listed in a recognised stockexchange in India; or”10. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. Earlier the words “, other than dividendsreferred to in section 115-O” were omitted by the Finance Act, 2002, w.e.f. 1-4-2003.