Section -4-XIV – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

Amendment of section 115AD

(a) in sub-section (1),—
(i) in the opening portion, for the words “Foreign Institutional Investor”, the words “specified fund or Foreign Institutional Investor” shall be substituted;
[(ii) after the long line, for clause (i), the following clause shall be substituted, namely:—
“(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:
  Provided that 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.;]
(iii) in clause (iv), for the words “Foreign Institutional Investor”, the words “specified fund or Foreign Institutional Investor” shall be substituted;
(b) after sub-section (1), the following sub-section shall be inserted, namely:—
“(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 manner.”;
(c) in sub-section (2), for the words “Foreign Institutional Investor”, at both the places where they occur, the words “specified Fund or Foreign Institutional Investor” shall be substituted;
(d) in the Explanation, for clause (b), the following clauses shall be substituted, namely:—
‘(b) the expression “permanent establishment” shall have the meaning assigned to it in clause (iiia) of section 92F;
(c) the expression “securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(d) the expression “specified fund” shall have the same meaning assigned to it in clause (c) of the Explanation to clause (4D) of section 10.’;