Amendment of section 115AD
| (a) | in sub-section (1),— |
| (i) | in the opening portion, for the words “Foreign Institutional Investor”, the words “specified fund or Foreign Institutional Investor” shall be substituted; | |
| [(ii) | after the long line, for clause (i), the following clause shall be substituted, namely:— |
| “(i) | the amount of income-tax calculated on the income in respect of securities referred to in clause (a), if any, included in the total income,— |
| (A) | at the rate of twenty per cent. in case of Foreign Institutional Investor; | |
| (B) | at the rate of ten per cent. in case of specified fund: | |
| Provided that the amount of income-tax calculated on the income by way of interest referred to in section 194LD shall be at the rate of five per cent.;] |
| (iii) | in clause (iv), for the words “Foreign Institutional Investor”, the words “specified fund or Foreign Institutional Investor” shall be substituted; |
| (b) | after sub-section (1), the following sub-section shall be inserted, namely:— |
| “(1A) | Notwithstanding anything contained in sub-section (1), in case of specified fund, the provision of this section shall apply only to the extent of income that is attributable to units held by non-resident (not being a permanent establishment of a non-resident in India) calculated in the prescribed manner.”; |
| (c) | in sub-section (2), for the words “Foreign Institutional Investor”, at both the places where they occur, the words “specified Fund or Foreign Institutional Investor” shall be substituted; | |
| (d) | in the Explanation, for clause (b), the following clauses shall be substituted, namely:— |
| ‘(b) | the expression “permanent establishment” shall have the meaning assigned to it in clause (iiia) of section 92F; | |
| (c) | the expression “securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); | |
| (d) | the expression “specified fund” shall have the same meaning assigned to it in clause (c) of the Explanation to clause (4D) of section 10.’; |
