The CBDT announced that no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee-denominated bonds issued between September 17, 2018 and March 31, 2019. Who is the chairman of CBDT?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Prem Kumar Sinha
B	Subhash Chandra Khuntia
C	TS Vijayan
D	Sushil Chandra

Explanation:

Detailed explanation-1: -Income which is earned outside India is not taxable in India. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO accounts is taxable in the hands of an NRI.

Detailed explanation-2: -Further, section 115A of the Act provides for a withholding tax rate of 20% of the gross amount of interest payable by the Government or an Indian concern to non-residents on moneys borrowed or debt incurred by it in foreign currency (other than, inter alia, interest covered by the aforesaid section 194LC).

Detailed explanation-3: -Interest income received by a foreign company is taxed at a concessional rate of withholding at 5%/20%, subject to conditions.

Detailed explanation-4: -Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force. 3) When to Deduct TDS undber Section 195? At the time of credit of such income to the account of payee or at the time of payment, whichever is earlier.

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