Infrastructure debt fund interest withholding requires deduction for specified non-resident recipients at a concessional rate.

Interest paid by an eligible Infrastructure Debt Fund to a non-resident other than a company or a foreign company is subject to tax deduction at source. The fund is the responsible deductor, and coverage depends on the payer and recipient categories rather than the mode of borrowing or bond type. A concessional rate of 5% applies without a monetary threshold, so every eligible interest payment attracts withholding at the earlier of credit or payment.

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