Infrastructure Debt Fund interest withholding requires concessional tax deduction on eligible payments to specified non-resident recipients without any threshold.

Section 393(2), Table serial number 5, requires an eligible Infrastructure Debt Fund to deduct tax at source on interest payable to non-residents other than companies and foreign companies. The provision covers any interest paid by the specified Infrastructure Debt Fund and is not confined to a particular borrowing mode or bond category. Tax is deductible at the concessional rate of 5%, with no monetary threshold. Deduction is required at the earlier of credit of the interest income or payment.

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