India to Continue 5% Withholding Tax on Foreigners’ Bond Income

India’s finance ministry clarified that there will be no change in the taxation structure for interest income earned by foreign investors on their bond investments, the ministry said in a statement Wednesday.

• Foreigners’ bond income will continue to be taxed at 5%
• The Economic Times reported Wednesday that a jump in withholding tax for foreign portfolio investors on bonds to 20% from 5% is set to come into force from April 1
• NOTE: India Must Clarify Bond-Income Tax on Foreigners: LIC Mutual

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Shruti Srivastava in New Delhi at ssrivastav74@bloomberg.net

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