<h1>India Cuts Tax on Non-Resident Investors' Interest Income to 5% u/s 194LC, Boosting Foreign Borrowing.</h1> The Indian government has approved a reduced tax rate of 5% on interest income for non-resident investors, down from 20%, under Section 194LC of the Income-Tax Act, 1961. This change aims to facilitate low-cost foreign borrowing by Indian companies. The reduced rate is applicable to interest paid on foreign currency loans or long-term infrastructure bonds borrowed between July 1, 2012, and June 30, 2015, with Central Government approval. Compliance is streamlined by granting blanket approval for borrowings meeting specific conditions, particularly those adhering to the Reserve Bank of India's External Commercial Borrowings regulations.