<h1>Indian Companies Can Issue Rupee Bonds Abroad; 5% Tax for Non-Resident Investors; Capital Gains Exemptions Planned.</h1> The Reserve Bank of India has allowed Indian companies to issue rupee-denominated bonds abroad. The government has clarified the tax implications for non-resident investors under the Income-tax Act, 1961. Interest income from these bonds will incur a 5% withholding tax, similar to off-shore dollar-denominated bonds. Additionally, capital gains from the appreciation of the rupee between issuance and redemption against foreign currency will be exempt from capital gains tax. A legislative amendment for this exemption will be proposed in the Finance Bill, 2016.