Foreign currency borrowing interest attracts concessional withholding when paid by eligible Indian payers to non-resident lenders. Interest on specified foreign currency borrowings from sources outside India is subject to tax deduction at source at a concessional rate of 5% when paid ... Summary
Foreign currency borrowing interest attracts concessional withholding when paid by eligible Indian payers to non-resident lenders.
Interest on specified foreign currency borrowings from sources outside India is subject to tax deduction at source at a concessional rate of 5% when paid by an Indian company or Business Trust to an eligible non-resident lender or foreign company. Deduction applies at the earlier of credit or payment, without a monetary threshold. Eligibility is confined to qualifying foreign currency loans, long-term infrastructure bonds, and approved long-term bonds within prescribed periods. The concessional rate applies only to interest computed up to the Central Government-approved rate.
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