Interest on money borrowed in foreign currency under a loan agreement or long-term infrastructure bond (01-07-2012 to 30-06-2023)
- Rate
- 5%
- Who deducts
- Indian company or business trust
- 1961 Act
- Section 194LC
Section finders.393(2) [Table: Sl. No. 2]Act page 476 s.393(2) [Table: Sl. No. 3]Act page 477 s.393(2) [Table: Sl. No. 4]Act page 477
Section 194LC in the Income-tax Act, 2025
The answer
Section 194LC of the Income-tax Act, 1961 is s.393(2) [Table: Sl. Nos. 2, 3 and 4] of the Income-tax Act, 2025. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
As enacted
Interest on money borrowed outside India by the issue of a rupee denominated bond before 01-07-2023
- Rate
- 5%
- Who deducts
- Indian company or business trust
- 1961 Act
- Section 194LC
Interest on a long-term or rupee denominated bond listed only on an IFSC exchange
- Rate
- 4% where issued 01-04-2020 to 30-06-2023;9% where issued on or after 01-07-2023
- Who deducts
- Indian company or business trust
- 1961 Act
- Section 194LC
Source: the enacted text of the Income-tax Act, 2025 [30 of 2025], as amended by the Finance Act, 2026, pages 476, 477. This page sets out the Table entry as read from the Act; read the section and the Notes to its Table before relying on it for a return or an opinion.
Questions this answers
What is section 194LC called in the Income-tax Act, 2025?
Section 194LC of the Income-tax Act, 1961 is s.393(2) [Table: Sl. Nos. 2, 3 and 4] of the Income-tax Act, 2025. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
What is the TDS rate and threshold under s.393(2) [Table: Sl. No. 2]?
Rate: 5%. It covers: Interest on money borrowed in foreign currency under a loan agreement or long-term infrastructure bond (01-07-2012 to 30-06-2023).
What is the TDS rate and threshold under s.393(2) [Table: Sl. No. 3]?
Rate: 5%. It covers: Interest on money borrowed outside India by the issue of a rupee denominated bond before 01-07-2023.
What is the TDS rate and threshold under s.393(2) [Table: Sl. No. 4]?
Rate: 4% where issued 01-04-2020 to 30-06-2023; 9% where issued on or after 01-07-2023. It covers: Interest on a long-term or rupee denominated bond listed only on an IFSC exchange.