TDS Section 194LC — Interest to non-resident on foreign currency loan / bond
FY 2025-26 · Rate 5% (IFSC: 4% / 9%)
What does this section cover?
TDS on interest paid by Indian company to non-resident on borrowing in foreign currency from outside India.
Why this section: Concessional 5% TDS on interest on ECBs, FCCBs, foreign currency bonds — drives down India's cost of foreign borrowing.
Key facts
- Threshold
- No threshold
- Applicable for
- FY 2025-26
- Who deducts
- Indian company / business trust
- Paid to
- Non-resident lender
- Statutory source
- Section 194LC, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194LC is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.