<h1>India Slashes Withholding Tax on External Borrowings, Boosts Investment Deductions in Key Sectors to Spur Growth.</h1> The Indian government has introduced measures to help corporations access lower-cost funds and boost investments across various sectors. The withholding tax on interest payments for external commercial borrowings in sectors like power, airlines, and affordable housing is proposed to be reduced from 20% to 5% for three years. Restrictions on venture capital fund investments have been lifted, and the cascading effect of Dividend Distribution Tax in multi-tier structures is addressed. Additionally, the investment-linked deduction for capital expenditure in certain sectors will increase to 150%. New sectors, such as beekeeping and container freight stations, are also eligible for these deductions.