Finance Bill proposes reduction of tax on interest
New Delhi, Feb 28 : The Finance Bill 2013-14 proposed reduction of tax on interest in respect of investment made through a designated bank account in Rupee dominated long term infrastructure bond from 20 percent to 5 percent.
Presenting the Union Budget in the Lok Sabha on Thurday, Union Finance Minister P. Chidambaram said that the rate of tax on interest paid to non-resident investors was reduced last year from 20 per cent to 5 per cent.
He has now extended the same benefit as above with a view to attract investment in long term infrastructure bonds.