Income Tax Act, 2025
Section 3: Ins. by s. 84, ibid (w.e.f. 12016).
3. Ins. by s. 84, ibid (w.e.f. 12016).
652
(b) where any income as aforesaid is credited to any account, whether called “suspense account”
or by any other name, in the books of account of the person liable to pay such income, such crediting
shall be deemed to be the credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
1[194LC. Income by way of interest from Indian company.—(1) Where any income by way of
interest referred to in sub-section (2) is payable to a non-resident, not being a company or to a foreign
company by a specified company 2[or a business trust], the person responsible for making the payment,
shall at the time of credit of such income to the account of the payee or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct the income-tax
thereon at the rate of five per cent.
(2) The interest referred to in sub-section (1) shall be the income by way of interest payable by the
specified company 2[or the business trust],—
3[(i) in respect of monies borrowed by it in foreign currency from a source outside India,—
(a) under a loan agreement at any time on or after the 1st day of July, 2012 but before the
4[1st day of July,2020]; or
(b) by way of issue of long-term infrastructure bonds at any time on or after the 1st day of
July, 2012 but before the 1st day of October, 2014; or
(c) by way of issue of any long-term bond including long-term infrastructure bond at any
time on or after the 1st day of October, 2014 but before the 4[1st day of July, 2020],
as approved by the Central Government in this behalf;5[or]
6[(ia) in respect of monies borrowed by it from a source outside India by way of issue of rupee
denominated bond before the 1st day of July, 2020, and]
(ii) to the extent to which such interest does not exceed the amount of interest calculated at the
rate approved by the Central Government in this behalf, having regard to the terms of the loan or the
bond and its repayment.
Explanation.—For the purpose of this section—
(a) “foreign currency” shall have the meaning assigned to it in clause (m) of section 2 of the
Foreign Exchange Management Act, 1999 (42 of 1999);
(b) ”specified company” means an Indian company.]
where any income as aforesaid is credited to any account, whether called “suspense account”
or by any other name, in the books of account of the person liable to pay such income, such crediting
shall be deemed to be the credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
1[194LC. Income by way of interest from Indian company.—
Where any income by way of
interest referred to in sub-section
is payable to a non-resident, not being a company or to a foreign
company by a specified company 2[or a business trust], the person responsible for making the payment,
shall at the time of credit of such income to the account of the payee or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct the income-tax
thereon at the rate of five per cent.
The interest referred to in sub-section
shall be the income by way of interest payable by the
specified company 2[or the business trust],—
3[
in respect of monies borrowed by it in foreign currency from a source outside India,—
under a loan agreement at any time on or after the 1st day of July, 2012 but before the
4[1st day of July,2020]; or
by way of issue of long-term infrastructure bonds at any time on or after the 1st day of
July, 2012 but before the 1st day of October, 2014; or
by way of issue of any long-term bond including long-term infrastructure bond at any
time on or after the 1st day of October, 2014 but before the 4[1st day of July, 2020],
as approved by the Central Government in this behalf;5[or]
6[
in respect of monies borrowed by it from a source outside India by way of issue of rupee
denominated bond before the 1st day of July, 2020, and]
to the extent to which such interest does not exceed the amount of interest calculated at the
rate approved by the Central Government in this behalf, having regard to the terms of the loan or the
bond and its repayment.
Explanation.—For the purpose of this section—
“foreign currency” shall have the meaning assigned to it in clause
of section 2 of the
Foreign Exchange Management Act, 1999 (42 of 1999);
”specified company” means an Indian company.]