Finance Act, 1988 Section 1

(a) where the person is resident in India -

(i) on income by way of interest other than "Interest on securities" 10 per cent.;

(ii) on income by way of winnings from lotteries and crossword puzzles 40 per cent.;

(iii) on income by way of winnings from horse races 40 per cent.;

(iv) on income by way of insurance Commission 10 per cent.;

(v) on income by way of interest payable on - 10 per cent.;

(A) any security, other than a tax-free security, of the Central or a State Government;

(B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

(C) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956, and any rules made thereunder;

(vi) on any other income (excluding interest payable on a tax-free security) 20 per cent.;

(b) where the person is not resident in India -

(i) in the case of a non-resident Indian -

(A) on investment income and long-term capital gains 20 per cent.;

(B) on income by way of interest payable on a tax-free security 15 per cent.;

(C) on income by way of winnings from lotteries and crossword Puzzles 40 per cent.;

(D) on income by way of winnings from horse races 40 per cent.;

(E) on the whole of other income income-tax at 30 per cent. of the amount of income orincome-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such inco me had been the total income, whichever is higher;

(ii) in the case of any other person -

(A) on income by way of interest payable on a tax-free security 15 per cent.;

(B) on income by way of winnings from lotteries and crossword puzzles 40 per cent.;

(C) on income by way of winnings from horse races 40 per cent.;

(D) on the whole of the other income-tax at 30 per cent. of the amount of income or income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher;