Taxation on Foreign Currency Convertible Bonds
interest payments on bonds, until the conversion option is exercised, would be subject to ction of tax at source at the rate of ten per cent. Tax n dividend on the converted portion of FCCB would be subject to deduction of tax at source at the rate of ten per cent. Conversion of CBs nto shares would not give rise to any capital gains liable to income tax in India. Transfers . fCCBs made outside India hy a non-resident investor to another non-resident investor would give rise to any capital gains liable to tax in India.