Insertion of new section 194LD

In force As on 07 Oct 2026

Ministry Finance Cited by 1 provision

Section 47 of the Finance Act, 2013 deals with insertion of new section 194LD. 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.

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.
Section 47, The Finance Act, 2013.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Referred to by 1

s. 72 Amendment of section 47

Questions about Section 47

What does Section 47 of the Finance Act deal with?

Section 47 of the Finance Act is headed "Insertion of new section 194LD". 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.

How do I find court cases under Section 47 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2013 47, section 47 Finance Act 2013, section 47 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 47 of the Finance Act, and has it changed?

Its own text turns on Income-tax Act 194LC (Income by way of interest from Indian company), Securities and Exchange Board of India Act 11 (Functions of Board), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2013. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

First Schedule. First Schedule7233 words
2. Income-tax3208 words
26. Insertion of new Chapter X-A1952 words
103. Amendment of Act 32 of 19941412 words
5. Amendment of section 101253 words
39. Insertion of new section 144BA1225 words

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.

(i)		a rupee denominated bond of an Indian company ; or
(ii)		a Government security:

(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)".