{"act":{"id":"finance-act-2013","short_title":"The Finance Act, 2013","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2013-2014.","act_number":null,"act_year":2013,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":142,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2013/"},"unit":"section","section":{"number":"47","heading":"Insertion of new section 194LD","text":"Insertion of new section 194LD. 47. After section 194LC of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2013, namely:— \"194LD. Income by way of interest on certain bonds and Government securities.—(1) Any person who is responsible for paying to a person being a Foreign Institutional Investor or a Qualified Foreign Investor, any income by way of interest referred to in sub-section (2), shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent. (2) The income by way of interest referred to in sub-section (1) shall be the interest payable on or after the 1st day of June, 2013 but before the 1st day of June, 2015 in respect of investment made by the payee in— (i) | a rupee denominated bond of an Indian company ; or (ii) | a Government security: Provided that the rate of interest in respect of bond referred to in clause (i) shall not exceed the rate as may be notified by the Central Government in this behalf. Explanation.—For the purpose of this section,— (a) | \"Foreign Institutional Investor\" shall have the meaning assigned to it in clause (a) of the Explanation to section 115AD; (b) | \"Government security\" shall have the meaning assigned to it in clause (b) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (c) | \"Qualified Foreign Investor\" shall have the meaning assigned to it in the Circular No. Cir/IMD/DF/14/2011, dated the 9th August, 2011, as amended from time to time, issued by the Securities and Exchange Board of India, under section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992)\". © Copyright. Taxmann Publications Pvt. Ltd.","html":"<p><b> Insertion of new section 194LD.</b></p><p><b> 47.</b> After section 194LC of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2013, namely:—</p><p>\"194LD. <i>Income by way of interest on certain bonds and Government securities.—</i>(1) Any person who is responsible for paying to a person being a Foreign Institutional Investor or a Qualified Foreign Investor, any income by way of interest referred to in sub-section (2), shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent.</p><p><span class=\"num\">(2)</span> The income by way of interest referred to in sub-section (1) shall be the interest payable on or after the 1st day of June, 2013 but before the 1st day of June, 2015 in respect of investment made by the payee in—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>a rupee denominated bond of an Indian company ; or</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>a Government security:</td></tr></table></div><p><b>Provided </b>that the rate of interest in respect of bond referred to in clause (<i>i</i>) shall not exceed the rate as may be notified by the Central Government in this behalf.</p><p><i>Explanation.</i>—For the purpose of this section,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>\"Foreign Institutional Investor\" shall have the meaning assigned to it in clause (<i>a</i>) of the <i>Explanation</i> to section 115AD;</td></tr><tr><td>(<i>b</i>)</td><td></td><td>\"Government security\" shall have the meaning assigned to it in clause (<i>b</i>) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);</td></tr><tr><td>(<i>c</i>)</td><td></td><td>\"Qualified Foreign Investor\" shall have the meaning assigned to it in the Circular No. Cir/IMD/DF/14/2011, dated the 9th August, 2011, as amended from time to time, issued by the Securities and Exchange Board of India, under section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992)\".</td></tr></table></div><p>© Copyright. Taxmann Publications Pvt. Ltd.</p>","words":329,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2013/section/47/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}