Section 10(4) in The Income- Tax Act, 1995

Central Government Act

(4) 3[ (i) in the case of a non- resident, any income by way of interest on

1. The word' or' omitted by the Finance Act, 1992, w. e. f. 1- 4- 1992. Earlier, it was inserted by the Finance (No. 2) Act, 1991, w. e. f. 1- 10- 1991

2. Omitted by the Finance Act, 1992, w. e. f. 1- 4- 1992. Prior to the omission, clause (iv), as inserted by the Finance (No. 2) Act, 1991, w. e. f. 1- 10- 1991, read as under:" (iv) winnings from races including horse races;"

3. Substituted for clauses (4) and (4A) by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1989. Prior to the substitution, clause (4), as amended by the Finance Act, 1964, w. e. f. 1- 4- 1964, and clause (4A), as inserted by the Finance Act, 1964, w. e. f. 1- 4- 1965; amended by the Finance Act, 1968, w. e. f. 1- 4- 1969 and substituted by the Finance Act, 1982, w. e. f. 1- 4- 1982, read as under:--

such securities or bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf, including income by way of premium on the redemption of such bonds;

(ii) 1[ in the case of an individual, any income by way of interest on moneys standing to his credit in a Non- Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973 ), and the rules made thereunder: Provided that such individual is a person resident outside India as defined in clause (q) of section 23 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account;]

999999. --" (4) in the case of a non- resident, any income from interest on such securities as the Central Government may, by notification in the Official Gazette, specify in this behalf, or any income from interest on, or from premium on the redemption of, any bonds issued by the Central Government under a loan agreement between the Central Government and the International Bank for Reconstruction and Development or under a loan agreement between the Central Government and the Development Loan Fund of the United States of America or by any industrial undertaking or financial corporation in India under a loan agreement with the said Bank or Fund, as the case may be, which is guaranteed by the Central Government; (4A) in the case of a per- son resident outside India, any income from interest on moneys standing to his credit in a Non- Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973 ), and any rules made thereunder. Explanation.- In this clause,' person resident outside India" shall have the meaning assigned to it in clause (q) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973 );"

1. Substituted by the Finance (No. 2) Act, 1991, w. e. f. 1- 4- 1991 Prior to the substitution, sub- clause (ii) read as under:" (ii) in the case of an individual, who is a person resident outside India as defined in clause (q) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973 ), any income by way of interest on moneys standing to his credit in a Non- Resident (External) Account in any bank in India in accordance with the said Act and the rules made thereunder;"

August, 1990 would be eligible for exemption under section 10 (4) (ii) in respect of NRE FCNR accounts maintained upto 30th June, 1991 [ (4A) Substituted by clause 10 (4) (ii), supra, by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1 April, 1989 .]