When Tax Is Deductible From Income or Long Term Capital Gain From Foreign Currency Bonds / Globle Depository Receipts (Sec 196C

When tax is deductible from income or long term capital gain from
foreign currency bonds / Globle depository receipts (sec 196C)
Who is the payer Any person responsible for paying

income/long term capital gain from
GDR/bonds
Who is the recipient A non-resident person
Payment covered Income /long term capital gain from
GDR/bonds
At what time tax has to be deducted at At the time of payment or at the time of
source credit, whichever is earlier
Maximum amount which can be paid -
without tax deduction
Rate of tax deduction at source 10%
When the provisions are not applicable Dividend referred to in sec 115O
Is it possible to get the payment without No provision
tax deduction or with lower tax deduction
When tax is deductible at source from income of Foreign
Institutional Investors from securities(sec 196D)
Who is the payer Any person responsible for paying income in
respect of securities referred to in section
115AD
Who is the recipient Foreign Institutional Investors
payment covered income in respect of securities referred to in

sec 115AD
At what time tax has to be deducted at source At the time of payment or at the time of credit
whichever is earlier
Maximum amount which can be paid without -

tax deduction
Rate of tax deduction at source 20%
When the provisions are not applicable Dividend referred to in sec 115-O: capital gain
arising from transfer of securities referred to
in sec 115AD
Is it possible to get the payment without tax No provisions
deduction or with lower tax deduction
Tax deducted-To be treated as income of deductee and
available for tax credit(sec 198&199)
• Tax deducted at source is deemed as income of the deductee. Further, the same
amount is available as tax credit in the hands of deductee subject to the following
propositions
• 1. Credit for tax deducted at source and paid to the Central Government, shall be
given to the deductee for the assessment year for which some income is
assessable.
• 2. Where tax has been deducted at source and paid to the Central Government
and the income is assessable over a number of years, credit for tax deducted at
source shall be allowed across those years in the same proportion in which the
income is assessable to tax.
• 3. If the income on which tax has been deducted is assessable in the hands of a
person other than the deductee, then tax credit will be given to such other person
if-
(a) the deductee files a declaration with the deductor
(b) the deductor shall keep the declaration in safe custody and reports the tax
deduction in the name of such other person in form nos..16A,26Q,etc.
Time-limit for payment of tax deduction at
source to the government
• Tax deducted at source is required to be paid to the credit of the Central
Government within time given below
Different situation Time-limit for Time-limit for issue of

deposit of tax certificate to the recipient
When payer is the Same day In case of salary or insurance

Government or when payment commission within 30 days
is made on behalf of the from the close of the financial
Government year ; otherwise within one
month from the end of the
month in which tax is
deducted at source
When tax is deducted by a Within two months Within two months and seven
person (other than from the last date of days from the last date of the
Government) under sec the accounting year accounting year
193,194A,194C,194D,194E,
Different situation Time limit for deposit of Time-limit for issue of
tax certificate to the recipient
When the assessing officer
has permitted to make
payment quarterly
-when such payment is July 15, October 15, Within 14 days from the
covered by sec January 15, and April 15 date of payment
194A,194D,194H
-when such payment is June 15, September 15, Within 14 days from the
payment of salary December 15, and March date of payment
15
Any other case Within one week from the In case of salary or
last date of the month in insurance commission
which tax deduction is within 30 days from the
made close of the financial year ;
otherwise within one
month from the end of the
month in which tax is
deducted at source
Tax deduction and collection account
number(sec 203A)
• Every person, deducting tax or collecting tax, who has not been allotted a tax
deduction account number or, as the case may be, a tax collection account
number, shall within one month from the end of the month in which tax is
deducted/collected, apply to the assessing officer for the allotment of a “tax
deduction and collection account number” in Form No.49B. Where a “tax
deduction account number” or “tax collection account number” or “tax deduction
and collection account number” has been allotted to a person, such person shall
quote such number-
• (A) in all challans for the payment of tax deducted/collected at source to the
Government
• (B) in all certificates of tax deduction/collection;
• (C) in all the quarterly return to the Government;
• (D) in all other documents pertaining to such transactions as may be prescribed.

When Tax Is Deductible From Income or Long Term Capital Gain From Foreign Currency Bonds / Globle Depository Receipts (Sec 196C

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When Tax Is Deductible From Income or Long Term Capital Gain From Foreign Currency Bonds / Globle Depository Receipts (Sec 196C

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Copyright:

Available Formats

When tax is deductible from income or long term capital gain from

foreign currency bonds / Globle depository receipts (sec 196C)

Who is the payer Any person responsible for paying

Who is the recipient Foreign Institutional Investors

payment covered income in respect of securities referred to in

Maximum amount which can be paid without -

Rate of tax deduction at source 20%

Different situation Time-limit for Time-limit for issue of

When payer is the Same day In case of salary or insurance

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