CBDT issue press release dated 17.09.2018 announcing tax exemption for interest payable by an Indian company or a business trust to a non-resident or foreign company in respect of rupee denominated bond issued outside India during September 17th, 2018 to March 31st, 2019.
This amendment made by government with a view to augment the foreign exchange inflow. Press release includes that “no tax shall be deducted on the payment of interest in respect of the said bond u/s. 194LC of the Income Tax Act,1961. Legislative amendments in this regard shall be proposed in due course.