34[Income of Foreign
Institutional Investors from securities.35
196D. (1) Where any income in respect of securities
referred to in clause (a) of sub-section (1) of section 115AD is payable to a Foreign Institutional
Investor, 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 income-tax thereon at the rate of twenty per cent
:
36[Provided
that no such deduction shall be made in respect of any dividends referred
to in section 115-O.]
(2)
No deduction of tax shall be made from any income, by way of capital gains
arising from the transfer of securities referred to in section 115AD, payable to a Foreign Institutional
Investor.]
