The government waives a 3-year blocking period on investments made by non-residents in IDF bonds – NewsJizz

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  • Last Updated on 28 October, 2020
17th September, 2019
 
Naveen Wadhwa, Deputy General Manager, Taxmann Said:
 
 

To attract extra-territorial investments to the IDF, any amount of interest received by non-resident or foreign companies from the investment in said IDF is charged at a reduced tax rate of 5 percent, said Deputy Director General of Taxmann, Naveen Wadhwa.
The IDF are investment vehicles to accelerate the flow of long-term debt to the sector.
Wadhwa said that if a non-resident transfers IDF bonds denominated in rupees to another non-resident outside India, that transfer is not considered as a transfer for capital gain purposes, and no capital gain tax is charged on said transfer.
However, all these benefits are available only when IDF is configured according to the prescribed guidelines and meets the required conditions.

 

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