TDS exemption on interest paid by IFSC Banking Units confirmed; no tax deduction on qualifying non-resident deposits or borrowings. IBUs established in IFSCs are treated as Offshore Banking Units; accordingly, tax need not be deducted at source on interest paid by such IBUs on deposits made on or after 1 April 2005 by non-residents or persons not ordinarily resident in India, and on borrowings from such persons made on or after that date, and such interest is excluded from total income under the corresponding exemption for interest paid by offshore banking units.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
TDS exemption on interest paid by IFSC Banking Units confirmed; no tax deduction on qualifying non-resident deposits or borrowings.
IBUs established in IFSCs are treated as Offshore Banking Units; accordingly, tax need not be deducted at source on interest paid by such IBUs on deposits made on or after 1 April 2005 by non-residents or persons not ordinarily resident in India, and on borrowings from such persons made on or after that date, and such interest is excluded from total income under the corresponding exemption for interest paid by offshore banking units.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
