Income Tax Act, 2025
Section 6: Ins. by Act 49 of 1991, s. 41 (w.e.f. 11992).
6. Ins. by Act 49 of 1991, s. 41 (w.e.f. 11992).
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(iii) the amount of income-tax with which the Offshore Fund would have been chargeable had its
total income been reduced by the amount of income referred to in clause (a) and clause (b).
(2) Where the gross total income of the Offshore Fund,—
(a) consists only of income from units or income by way of long-term capital gains arising from
the transfer of units, or both, no deduction shall be allowed to the assessee under sections 28 to 44C
1*** or clause (i) or clause (iii) of section 57 or under Chapter VI-A 2[and nothing contained in the
provisions of the second proviso to section 48 shall apply to income referred to in clause (b) of
sub-section (1)];
(b) includes any income referred to in clause (a), the gross total income shall be reduced by the
amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total
income as so reduced were the gross total income of the assessee.
Explanation.—For the purposes of this section,—
(a) “overseas financial organisation” means any fund, institution, association or body, whether
incorporated or not, established under the laws of a country outside India, which has entered into an
arrangement for investment in India with any public sector bank or public financial institution or a
mutual fund specified under clause (23D) of section 10 and such arrangement is approved by the
3[Securities and Exchange Board of India, established under the Securities and Exchange Board of
India Act, 1992 (15 of 1992),] for this purpose;
(b) “unit” means unit of a mutual fund specified under clause (23D) of section 10 or of the Unit
Trust of India;
(c) “foreign currency” shall have the meaning as in 4[the Foreign Exchange Management
Act, 1999 (42 of 1999)];
(d) “public sector bank” shall have the meaning assigned to it in clause (23D) of section 10;
(e) “public financial institution” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
(f) “Unit Trust of India” means the Unit Trust of India established under the Unit Trust of India
Act, 1963 (52 of 1963)].
5[115AC. Tax on income from bonds or Global Depository Receipts purchased in foreign
currency or capital gains arising from their transfer.—(1) Where the total income of an assessee,
being a non- resident, includes—
(a) income by way of interest on bonds of an Indian company issued in accordance with such
scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf,
or on bonds of a public sector company sold by the Government, and purchased by him in foreign
currency; or
(b) income by way of dividends 6[, other than dividends referred to in section 115-O,] on Global
Depository Receipts—
(i) issued in accordance with such scheme as the Central Government may, by notification in
the Official Gazette, specify in this behalf, against the initial issue of shares of an Indian company
and purchased by him in foreign currency through an approved intermediary; or
(ii) issued against the shares of a public sector company sold by the Government and
purchased by him in foreign currency through an approved intermediary; or
1. The words, brackets and figures “or sub-section (2) of section 48” omitted by Act 18 of 1992, s. 55 (w.e.f. 11993).
the amount of income-tax with which the Offshore Fund would have been chargeable had its
total income been reduced by the amount of income referred to in clause
and clause
Where the gross total income of the Offshore Fund,—
consists only of income from units or income by way of long-term capital gains arising from
the transfer of units, or both, no deduction shall be allowed to the assessee under sections 28 to 44C
1*** or clause
or clause
of section 57 or under Chapter VI-A 2[and nothing contained in the
provisions of the second proviso to section 48 shall apply to income referred to in clause
of
sub-section
includes any income referred to in clause
“overseas financial organisation” means any fund, institution, association or body, whether
incorporated or not, established under the laws of a country outside India, which has entered into an
arrangement for investment in India with any public sector bank or public financial institution or a
mutual fund specified under clause
of section 10 and such arrangement is approved by the
3[Securities and Exchange Board of India, established under the Securities and Exchange Board of
India Act, 1992 (15 of 1992),] for this purpose;
“unit” means unit of a mutual fund specified under clause
of section 10 or of the Unit
Trust of India;
“foreign currency” shall have the meaning as in 4[the Foreign Exchange Management
Act, 1999 (42 of 1999)];
“public sector bank” shall have the meaning assigned to it in clause
of section 10;
“public financial institution” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
“Unit Trust of India” means the Unit Trust of India established under the Unit Trust of India
Act, 1963 (52 of 1963)].
5[115AC. Tax on income from bonds or Global Depository Receipts purchased in foreign
currency or capital gains arising from their transfer.—
Where the total income of an assessee,
being a non- resident, includes—
income by way of interest on bonds of an Indian company issued in accordance with such
scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf,
or on bonds of a public sector company sold by the Government, and purchased by him in foreign
currency; or
income by way of dividends 6[, other than dividends referred to in section 115-O,] on Global
Depository Receipts—
issued in accordance with such scheme as the Central Government may, by notification in
the Official Gazette, specify in this behalf, against the initial issue of shares of an Indian company
and purchased by him in foreign currency through an approved intermediary; or
issued against the shares of a public sector company sold by the Government and
purchased by him in foreign currency through an approved intermediary; or
1. The words, brackets and figures “or sub-section
of section 48” omitted by Act 18 of 1992, s. 55 (w.e.f. 11993).