Govt waives 3-year lock-in period on investments made by NRIs in IDF bonds – India Finance News

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  • By Taxmann
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  • Last Updated on 23 September, 2021
17th September, 2019
 
Naveen Wadhwa, Deputy General Manager, Taxmann Said:
 
To attract off-shore investments into IDFs, any amount of interest received by non-resident or foreign company from investment in such IDFs is charged at a reduced tax rate of 5 per cent, said Taxmann Deputy General Manager Naveen Wadhwa.
IDFs are investment vehicles to accelerate the flow of long-term debt to the sector.
Wadhwa said if a non-resident transfers rupee-denominated bonds of IDF to another non-resident outside India, such transfer is not regarded as transfer for the purpose of capital gain, and no capital gain tax is charged on such transfer.

 

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