Disclosure of interest income taxable at a concessional rate of 4% under Section 194LC [ITR-6]
Background Section 194LC provides a specified company or a business trust to deduct tax at a concessional rate of 5% from interest paid to the non-residents. The tax is deducted at the concessional rate if the borrowing is made before 01-072023. The Finance Act 2020 has reduced the rate of TDS to 4% in respect of interest payment to a non-resident against borrowings in foreign currency through issues of long-term bonds and Rupee Denominated Bonds, which are listed on a recognised stock exchange in any IFSC.
Change in New ITR Form The new ITR form makes the consequential changes in Schedule OS (Other Sources). A new row has been inserted in the Schedule to disclose the interest referred to in Section 194LC, which is taxable at the rate of 4%. (Read More: TDS from Interest paid on Foreign Borrowings on Taxmann.com/ Practice)
Know about 30 Changes in new ITR Forms for AY 2022-23
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