IFSC bond interest withholding applies to qualifying non-resident payments, with concessional rates limited to Government-approved interest. Section 393(2), Table Sl. No. 4 requires an Indian company or Business Trust to deduct tax at source on eligible interest paid to a non-resident or ... Summary
IFSC bond interest withholding applies to qualifying non-resident payments, with concessional rates limited to Government-approved interest.
Section 393(2), Table Sl. No. 4 requires an Indian company or Business Trust to deduct tax at source on eligible interest paid to a non-resident or foreign company for long-term bonds or rupee denominated bonds listed exclusively on a recognised stock exchange in an IFSC. The rate is 4% for specified earlier bond issuances and 9% for bonds issued on or after 1 July 2023. No threshold applies. Concessional treatment is restricted to interest not exceeding the Central Government-approved rate.
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