The Finance Bill 2013-14 proposes reduction of tax on interest in respect of investment made through a designated bank account in Rupee dominated long term infrastructure bond from 20 percent to 5 percent. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that the rate of tax on interest paid to non-resident investors was reduced last year from 20 per cent to 5 per cent. He has now extended the same benefit as above with a view to attract investment in long term infrastructure bonds.

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DSM/RC/nb/44

(Release ID :92760)

Tax on interest for rupee long term infrastructure bonds reduced, easing withholding to encourage investor participation. The Finance Bill 2013-14 reduces the tax deducted on interest paid on investments made through a designated bank account in rupee denominated long term infrastructure bonds, aligning the treatment with a prior concession for non resident investors and aiming to attract increased investment into such bonds.