New Delhi: The government on Thursday said 5 percent tax would be levied at the time of distribution of payout to non-resident investors in an Infrastructure Development Fund (IDF), irrespective of being promoted through either mutual fund or NBFC route.
"I propose to provide parity in taxation between an IDF- Mutual Fund that distributes income and an IDF-NBFC that pays interest, when the payment is made to a non-resident," Finance Minister P Chidambaram said in the Budget speech for 2013-14.
The rate of tax on such distributed income or interest will be 5 percent, he said.
He also stated that investor protection fund set-up by depositor for protection of the interest of beneficial owners will be exempt from income tax, he added.
First Published: Thursday, February 28, 2013, 17:15