<h1>India Grants Tax Exemption on Interest from Offshore Rupee Bonds Issued in 2018-2019 u/s 194LC.</h1> The Government of India announced a tax exemption on interest income from specified offshore Rupee Denominated Bonds. Interest paid by Indian companies or business trusts to non-residents, including foreign companies, on such bonds issued outside India between 17th September 2018 and 31st March 2019, will not be subject to tax. This measure aims to encourage low-cost foreign borrowings and increase foreign exchange inflow to address the Current Account Deficit. Consequently, no tax will be deducted on these interest payments under section 194LC of the Income-tax Act, 1961. Legislative amendments will be proposed to implement this decision.