To enjoy lower withholding of tax @ 5% on the interest payments by Indian companies on borrowings made in foreign currency by such companies from a source outside India, bonds issued should satisfy following conditions:
1. Bond issue on or after 1st day of October, 2014 but before the 1st day of July, 2017.
2. Comply with FEMA Regulations
3. Bond should have a loan registration no. issued by RBI.
4. Long term i.e. 3 or more years of maturity.
5. Interest rate should be any rate of interest which is within the All-in-cost ceilings specified by the RBI under ECB regulations.
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