The Ministry of Finance through press release dated 17 March 2021 has clarified that the concessional rate of tax provided for certain interest income of the FPIs shall continue. Tax shall be chargeable at the concessional rate of 5% on interest income of FPIs as per Section 194LD of Income Tax Act.
Upon noticing the false media reports that the said concessional tax rate of 5% has been withdrawn, the ministry has hereby clarified that there is no change in the concessional rate of tax under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the same shall continue to be applicable for interest income.
