IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2018 | Removal date: open ended
Still in force

Controls on credit operations

The concessional withholding tax at the rate of 5%, against 20%, on interest income earned by non-residents or non-resident entities from their commercial borrowings to Indian companies has been extended for borrowings made until 30 June 2020. The applicable date was 1 July 2017 earlier. This withholding rate is applicable for Foreign Insitutitional and Qualified Foreign Investors who have invested in rupee denominated bonds of Indian companies or in Government securities and for foreign individuals/companies who have lent money through a loan agreement with an Indian company or invested in long term infrastucture bonds of Indian companies. The reduced withholding tax rates in these sections are applicable since June 2013 for QFIs and FIIs and since July 2012 for the latter entities.

AFFECTED COUNTRIES

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