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There are reports in certain section of media that the said concessional tax rate of 5% has been withdrawn.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

  • SEBI

EoGM of company can not ratify diversion of fund raised by preferential issue – SC

Ratification by EoGM of the company can not give legality of the diversion of the fund raised by preferential issue.…

5 hours ago
  • Excise/Custom

Return of export cargo from Hormuz Strait where vessel do not lands at original port

CBIC prescribes procedures for return of export cargo from international waters due to closure of the Strait of Hormuz where…

7 hours ago
  • Income Tax

Disallowance u/s 13(1)(c) can’t be made primarily that specified concerns earned higher profits.

Mere higher profit margins would not make payments made by Trust as diversion of funds for the benefit of the…

2 days ago
  • society

Chartered Accountant can’t be made an Inquiry Officer u/s 24 of Societies Registration Act 1860

Chartered Accountant can’t be made an Inquiry Officer under section 24 of Societies Registration Act 1860 – High Court In…

2 days ago
  • Government

Revised turnover threshold for grant of license/registration to food businesses in India

FSSAI revises turnover threshold for grant of license/registration to various food businesses in India under Food Safety and Standards (Licensing…

2 days ago
  • Government

Persons with Piped Gas connection to surrender domestic LPG connection immediately

Persons with Piped Gas connection to surrender domestic LPG connection and not to obtain a domestic LPG connection Amidst the…

3 days ago