Withholding tax on rupee-denominated infrastructure bonds lowered to 5%

From June 1, foreign investors will have to pay 5 per cent withholding tax on interest earned on rupee-denominated long-term infrastructure bonds issued by Indian companies and Government securities. Earlier, the rate was 20 per cent. The government also clarified that those foreign investors would not have to obtain a PAN card to benefit from reduced withholding tax on long term infrastructure