Section 115AD Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

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The Tax Publishers [1][115AD. Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer. [2][(1)] Where the total income of a [3][specified fund or Foreign Institutional Investor] includes [4][(a) income[5][* * * ] received in respect of securities (other than unit referred to in Section 115AB); or] (b) income by way of short-term or long-term capital gains arising from the transfer of such securities, the income-tax payable shall be the aggregate of [6][(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; Providedthat 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.;] (ii) the amount of income-tax calculated on the income by way of short-term capital gains referred to in clause (b), if any, included in the total income, at the rate of thirty per cent; [7][Provided* that the amount of income-tax calculated on the income by way of short-term capital gains referred to in Section 111A shall be at the rate of [8][fifteen per cent];] (iii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; [9][* * *] (iv) the amount of income-tax with which the [10][specified fund or Foreign Institutional Investor] would have been chargeable had its total income been reduced by the amount of income referred to in clause (a) and clause (b). [11][(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[12] manner.] SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

[1][115AD. Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

[2][(1)] Where the total income of a [3][specified fund or Foreign Institutional Investor] includes

[4][(a) income[5][* * * *] received in respect of securities (other than unit referred to in Section 115AB); or]

(b) income by way of short-term or long-term capital gains arising from the transfer of such securities,

the income-tax payable shall be the aggregate of

[6][(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;

Providedthat 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.;]

(ii) the amount of income-tax calculated on the income by way of short-term capital gains referred to in clause (b), if any, included in the total income, at the rate of thirty per cent;

[7][Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in Section 111A shall be at the rate of [8][fifteen per cent];]

(iii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income, at the rate of ten per cent; [9][* * *]

(iv) the amount of income-tax with which the [10][specified fund or Foreign Institutional Investor] would have been chargeable had its total income been reduced by the amount of income referred to in clause (a) and clause (b).

[11][(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[12] manner.]