115AD. Tax on income of Foreign Institutional Investors from securities or capital gains
arising from their transfer.
(1)Where the total income of a Foreign Institutional Investor includes -
3[(a) 4[income other than income by way of dividends referred to in section 115 -O] received in
respect of securities (other than units 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 - (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, at the rate of twenty per cent:
5[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.;] (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:
6[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 7[fifteen per cent.];]