Budget 2017 - 18- Extension of eligible period of concessional tax rate under section 194LD

Budget 2017 - 18- Extension of eligible period of concessional tax rate under section 194LD


The existing provisions of section 194LD of the Act, provides for lower TDS at the rate of five per cent. in the case of interest payable at any time on or after 1st June, 2013 bue before the 1st July , 2017 to FIIs and QFIs on their investments in Government securities and rupee denominated corporate bonds provided that the rate of interest does not exceed the rate notified by the Central Government in this behalf. 

Considering the representations received from stakeholders, it is proposed to amend section 194LD to provide that the concessional rate of five per cent. TDS on interest will now be available on interest payable before the 1st July , 2020. 

This amendment will take effect from 1st April, 2018 and will, accordingly , apply in relation to the assessment year 2018-19 and subsequent years. [Clause 68]
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