Income Tax

Concessional tax rate of 5% continue to apply to interest income u/s 194LD even after amendment to section 115AD

 
Concessional tax rate of 5% continue to apply to interest income u/s 194LD even after amendment to section 115AD
Government of India
Department of Revenue
Ministry of Finance
Central Board of Direct Taxes
 
New Delhi, 17th March, 2021

Clarification on continuation of concessional rate of tax on certain interest income of the FPIs

PRESS RELEASE
 
Section 115AD of the Income-tax Act, 1961 (the ‘Act’) inter alia contains provisions for taxation of income of FPIs. Proviso to section 115AD(1)(i) provides that the tax shall be chargeable at the concessional rate of 5% on interest income referred to in section 194LD.
 
There are reports in certain section of media that the said concessional tax rate of 5% has been withdrawn. It is hereby clarified that there is no change in the said proviso even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the concessional rate of tax of 5% shall continue to be applicable for interest income referred to in section 194LD of the Act.
 
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)Official Spokesperson, CBDT

Share

Recent Posts

  • ICAI

ICAI revises criteria for empanelment of organizations to impart industrial training

ICAI revises eligibility criteria for empanelment of organizations to impart industrial training (Effective from 1st January, 2026) The Council of…

26 minutes ago
  • Income Tax

Date of digital signature and issue determines date of a notice u/s 148 of Income Tax Act

Date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act - ITAT…

2 days ago
  • DGFT

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential)

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential) w.e.f. 9th January 2026 In exercise of powers conferred under…

2 days ago
  • Income Tax

Net profit rate may not have variation commensurate to increase of turnover

Net profit rate may not per se experience variation commensurate to the increase of turnover. In a recent judgment, Allahabad…

2 days ago
  • Excise/Custom

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’ under Customs Tariff Heading 8436. In a recent judgment, Hon'ble Supreme…

3 days ago
  • negotiable instrument act

Statutory presumption attached to issuance of a cheque to be accorded due weight – SC

Statutory presumption attached to issuance of a cheque, being one made in discharge of a legally enforceable debt or liability,…

3 days ago