https://www.taxtmi.com/article/detailed?id=6161 Taxation of interest from India hinges on whether payments qualify as interest under domestic law or a DTAA and on the allocation of taxing rights between source and residence. Indian law deems interest payable by Indian residents or the Government to accrue in India; domestic sections offer concessional withholding rates for specified categories. DTAAs generally allow residence taxation with a limited source taxing right at fixed gross rates and define interest and exceptions for permanent establishments and non-arm's-length payments. Recent amendment treats interest from an Indian banking permanent establishment to its head office as arising in India and subject to withholding. en-us Wed, 18 Mar 2015 08:05:00 +0530 Wed, 18 Mar 2015 08:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=6161 Taxation of interest from India hinges on whether payments qualify as interest under domestic law or a DTAA and on the allocation of taxing rights between source and residence. Indian law deems interest payable by Indian residents or the Government to accrue in India; domestic sections offer concessional withholding rates for specified categories. DTAAs generally allow residence taxation with a limited source taxing right at fixed gross rates and define interest and exceptions for permanent establishments and non-arm's-length payments. Recent amendment treats interest from an Indian banking permanent establishment to its head office as arising in India and subject to withholding. Articles Income Tax Wed, 18 Mar 2015 08:05:00 +0530 https://www.taxtmi.com/article/detailed?id=6161