- Central Board of Direct Taxes (CBDT) has announced tax exemption on interest payable by Indian companies to non-residents, including foreign companies, on “masala bonds” issued between September 17, 2018 and March 31, 2019.
- Till now, interest payable on such bonds issued before July 1, 2020 was liable for concessional rate of tax of five per cent.
- Rupee-denominated or masala bonds are sold outside India but in rupee terms.
Points to remember:
- Time period.
- Interest rate that was charged earlier?- 5%