<h1>Withholding tax on interest from offshore rupee bonds treated as final, with capital gains exemption for rupee appreciation announced.</h1> Interest income to non-resident investors from offshore rupee denominated bonds will attract a withholding tax at the rate of 5 percent treated as a final tax, mirroring the treatment for offshore dollar bonds. Capital gains resulting from rupee appreciation between issue and redemption, measured against the investor's foreign currency, are proposed to be exempted from capital gains tax by amendment in the Finance Bill, 2016.