<h1>India Slashes Withholding Tax on Interest for Infrastructure Bonds to 5% to Attract Foreign Investment.</h1> The Indian government reduced the withholding tax (WHT) on interest payments from 20% to 5% for Infrastructure Debt Funds and foreign currency borrowings, aiming to boost infrastructure development. This reduction, initially for a limited period, was extended to include non-resident investments in rupee-denominated long-term infrastructure bonds. To further encourage foreign investment, the reduced WHT rate was applied to interest on bonds issued by Indian companies and government securities, benefiting Foreign Institutional Investors and Qualified Foreign Investors. Amendments to the Income-tax Act, including Section 194LD, allow these benefits even without a PAN for non-resident investors, promoting growth in the Indian debt market.