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Shristi Rajput
May 12, 2026

Submitted By: Shristi Rajput

Circular No 26/2016 Applicability of section 197A(1D) and section 10(15)(viii) of the income tax act

CBDT Circular No. 26/2016 dated 4 July 2016 clarified that interest paid by IFSC Banking Units (IBUs) to non-residents or persons not ordinarily resident in India on eligible deposits/borrowings is exempt from TDS under Section 197A(1D) and also exempt from income tax under Section 10(15)(viii).

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