Withholding on interest: tax must be deducted when Indian companies pay interest to non-resident recipients on approved foreign borrowings. Tax must be deducted at source on interest paid by an Indian company to non-resident recipients where the interest arises from foreign-currency borrowings outside India or from Central Government-approved long-term infrastructure bonds, and only to the extent the interest does not exceed the amount calculated at a rate approved by the Central Government; the payer must deduct tax at the time of credit or payment, whichever is earlier.