Kerala HC Upholds Life Terms For Five, Acquits Two in Renjith Johnson Murder, Says TIP Not Needed  ||  Kerala HC Orders Emergency Electric Fencing at Tribal School to Address Rising Wildlife Conflict  ||  Madras HC: Arbitrator Can’t Pierce Corporate Veil to Bind Non-Signatory and Partly Sets Aside Award  ||  Calcutta HC: Post-Award Claim For Municipal Tax Reimbursement is Not Maintainable under Section 9  ||  Tripura HC: Tax Authorities Cannot Revive Repealed VAT Powers or Retain Deposits Without Law  ||  J&K&L HC: Obtaining a Passport is a Constitutional Right; Citizens Need Not Prove Travel Necessity  ||  Allahabad HC: Police Report in Non-Cognizable Offence is a Complaint; Accused Must Be Heard First  ||  Kerala HC: Hospitals Must Display Rates and Cannot Deny Emergency Care For Lack of Advance Payment  ||  Orissa HC: Convict’s Refusal to Appeal Through Legal Aid Must be Recorded in Writing  ||  SC Halts Deer Translocation From Delhi’s AN Jha Park And Orders a Probe into DDA Negligence    

Exemption to Interest Income on Specified Off-shore Rupee Denominated Bonds- (Press Information Bureau) (17 Sep 2018)

MANU/PIBU/1334/2018

Direct Taxation

Interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of rupee denominated bond issued outside India before the 1st of July, 2020 is liable for concessional rate of tax of Five Percent (5%). Consequently, Section 194LC of the Income-tax Act, 1961 (the Act) provides for the deduction of tax at a lower rate of five percent on the said interest payment.

Consequent to review of the State of Economy on 14th September, 2018 by the Prime Minister, Shri Narendra Modi, the Finance Minister, Shri Arun Jaitley had announced a Multi-pronged Strategy to contain the Current Account Deficit (CAD) and augment the Foreign Exchange Inflow. In this background, Low Cost Foreign Borrowings through Off-shore Rupee Denominated Bond have been further incentivised to increase the foreign exchange inflow.

Accordingly, it has been decided that interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of Rupee Denominated Bond issued outside India during the period from 17th September, 2018 to 31st March, 2019 shall be exempt from tax, and consequently, no tax shall be deducted on the payment of interest in respect of the said Bond under Section 194LC of the Act.

Legislative amendments in this regard shall be proposed in due course.

Tags : INTEREST INCOME   DENOMINATED BONDS EXEMPTION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved