The central Board of Direct taxes has clarified that foreign portfolio investors (FPIs) will continue to enjoy 5 withholding tax on debt interest income. The clarification came after a few reports said that the concessional withholding tax rate of 5 per cent on interest income of FPIs has been withdrawn. The Central Board of Direct Taxes confirmed recently that the five per cent tax rate on interest income of FPIs will see no change.
Please access the press release here.
