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of <h1>Payors must deduct 5% TDS on interest to FII/QFI for rupee bonds and government/municipal securities within specified 2013-2023 periods</h1> Any person responsible for paying interest to a Foreign Institutional Investor or a Qualified Foreign Investor must deduct tax at source at 5% when interest is credited or paid, for interest on rupee-denominated bonds of Indian companies or Government securities paid between 1 June 2013 and 30 June 2023, and for municipal debt securities paid between 1 April 2020 and 30 June 2023. The interest rate on eligible rupee bonds is subject to a cap as notified by the Central Government. Definitions of Foreign Institutional Investor, Government security and municipal debt securities are provided by applicable regulatory provisions.
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