Taxation of income from off-shore rupee denominated bonds
Updated: Oct 29, 2015 02:56:05pm
Legislative amendment in this regard will be proposed through the Finance Bill, 2016, the Ministry said in a release today.
The Reserve Bank of India has recently permitted Indian corporates to issue rupee denominated bonds outside India.
The matter of taxation of income from such bonds under Income-tax Act, 1961 has been considered by the Government.
In so far as taxation of interest income from these INR off-shore bonds in the case of non-resident investors is concerned, it is clarified that withholding tax at the rate of 5 percent, which is in the nature of final tax, would be applicable in the same way as it is applicable for off-shore dollar denominated bonds. (KNN Bureau)