Concessional Tax rate under section 194 LD –Extension of eligible period thereof (Budget 2017)

Budget 2017, amend the provision of section 194LD to provides that

lower TDS at the Rate of five percent will now be available

on interest payable before 1^st July 2020 to FII and QFIs on their investments in Government securities and rupee denomination corporate bonds

provided that the rate of interest does not exceed the rate notified by the Central Government in this behalf.

Existing provision of section 194LD provides lower TDS at the rate of five percent on interest payable at any time on or after 1st June, 2013 but before the 1st July, 2017.

The amendment will be applicable from the previous year 2017-2018.