15. Insertion of new section 122B in the principal enactment

The following new section is hereby inserted immediately after section 122A of the principal enactment and shall have effect as section 122B of that enactment :—

122B. (1) Any company which issues corporate debt security shall, subject to the provisions of this Chapter, deduct at the time of payment the interest payable by such company where such payment takes place on or after

November 1, 2002 on any sum of money subscribed by any person or partnership towards such debt security, whether such subscription has been made before or on or after November 1, 2002, income tax at the rate of ten percentum on the total amount of interest accrued and paid or credited on such debt security :

Provided however any corporate debt security issued at a discount exceeding fifty percentum of the par value of such security shall not be subject to the deduction of tax under this section. Any interest or other income arising out of or in relation to such security shall be chargeable with tax, at the rate of ten percentum, including any secondary market transaction, involving such security notwithstanding any thing to the contrary in this Act.

Where any discount is allowed or any other guaranteed income is paid on such debt security on or after November 1, 2002 such discount or income shall be deemed to be interest paid and be liable to the deduction of income tax accordingly.

“corporate debt security” means any debt security issued by any company —

which is a limited liability company listed on the Stock

where the security is listed on the

where the paying agent for such company is a —

debt security shall not include any loans, advances, over-draft or other similar facility or financial instrument issued by a bank or financial institution in the course of carrying on a business.