Concessional withholding on interest extended to bonds, government securities and municipal debt with a notified interest cap.

The amendment to section 194LD substitutes sub section (2) to make the concessional withholding rate applicable to interest on rupee denominated bonds of Indian companies and Government securities payable before the first day of July, 2023, and to extend concessional treatment to interest on municipal debt securities payable on or after the first day of April, 2020 but before the first day of July, 2023, while subjecting interest on rupee denominated bonds to an interest rate cap to be notified by the Central Government.

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