Section 393(2); Table [For Payments to Non-Resident]-Interest on Foreign Currency Borrowings

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.... No. Nature of payment Recipient Deductor Rate of TDS 2 Interest payable in respect of moneys borrowed in foreign currency from a source outside India under specified loan agreements or approved long-term bonds Non-resident (other than a company) or a foreign company Indian company or Business Trust 5% Scope of the provision This clause a....

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....n company. The provision therefore applies only to interest payable to non-resident lenders. Rate of deduction The provision prescribes a concessional rate of 5%.   Threshold limit No threshold limit has been prescribed. Accordingly, every payment of eligible interest covered by this clause attracts deduction of tax at source. Specified borrowings The concessional r....

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....lies only to interest on specified foreign currency borrowings from sources outside India. • Applicable only where the payer is an Indian company or Business Trust. • The recipient must be a non-resident or foreign company. • A concessional TDS rate of 5% is prescribed. • No monetary threshold has been provided. • The benef....