No Withholding Tax On Interest Payment Of Masala Bonds

The Central Board of Direct Taxes (CBDT) announced that no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee-denominated bonds issued between September 17, 2018 and March 31, 2019. 
The move is expected to incentivise foreign exchange inflows into India through low-cost offshore rupee-denominated bonds, popularly referred to as masala bonds. Legislative amendments in this regard will be done in due course. 
Source- The Hindu Business Line

Static/Current Takeaways Important for Indian Bank PO Exam 2018- 
  • Sushil Chandra is the chairman of Central Board of Direct Taxes.