<h1>Withholding tax on interest to foreign institutional and qualified foreign investors applies to rupee bonds and government securities.</h1> The Bill inserts section 194LD requiring deduction of tax at source on interest paid to Foreign Institutional Investors and Qualified Foreign Investors on investments in rupee-denominated bonds of Indian companies and government securities, with the payer obliged to deduct tax at the applicable rate and the interest eligible for the provision limited by a rate to be notified by the Central Government. Consequential amendments align related withholding, tax computation and exemption provisions across the Income-tax Act.