Circular No. 592-Income tax Section 10(4 )(ii) of the Income-tax Act, 1961 provides for exemption from income-tax 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), on 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.
Recently some stock brokers have been declared as defaulters by certain Stock Exchanges. The important among the reasons for this event as reported in the press were the default on the part of clients and/or over trading by clients and or brokers.
We invite your attention to the bye-laws and rules framed by the Stock Exchange under the Securities Contracts (Regulation) Act, and the Rules thereunder which require that the member-brokers of the Stock Exchange should issue contract notes to their clients for the securities sold and purchased by them on behalf of the clients.
