Section 115AC of ITA, 1961 : Section 115Ac: Tax On Income From Bonds Or Global Depository Receipts Purchased In Foreign Currency Or Capital Gains Arising From Their Transfer

Explanation using Example

Let's consider a hypothetical scenario to understand the application of Section 115AC of the Income-tax Act, 1961:

John, a non-resident individual from the UK, has invested in bonds issued by an Indian company, which were specifically notified by the Central Government for foreign investment. He has also purchased Global Depository Receipts (GDRs) of another Indian company through an approved intermediary, using foreign currency.

In the financial year, John received:

• Interest income of INR 50,000 from the bonds.
• Dividend income of INR 30,000 from the GDRs.
• He also sol...

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