Section - 194LD – Extension of eligible
period of concessional tax rate-
The existing provision provides
for TDS at 5% in case of interest payable on or after 01.06.2013 but before
01.07.2017 to FIIs and QFIs on their investments in Government securities and
Rupee denominated corporate bonds if the rate of interest is within the rate
notified by the Central Government. The amendment seeks to provide that the
concessional rate will continue to apply on interest payable before 01.07.2020.
The amendment will be effective
from 1st April 2018 relevant to assessment year 2018-19.