NCD Holder FAQ

NCD Holder FAQ

The frequently asked questions (“FAQs”) addressed below have been provided for information purposes only. These do not, and should not be deemed to, constitute legal, financial, investment, tax or any other advice in relation to InvIT in general and India Grid Trust (“IndiGrid”) in particular. It should not be relied for any investment decisions and all prospective investors should consult their own professional advisors before making any investment decision regarding InvIT or IndiGrid. IndiGrid Investment Managers Limited, Axis Trustee Services Limited (collectively, the “Parties to IndiGrid”) and IndiGrid shall not be liable for consequences of any reliance on the FAQs. No assurance is given that the revenue authorities/courts will concur with the views expressed herein. The FAQs do not, and should not be deemed to, constitute solicitation for investment, or invitation to offer, or offer in relation securities of either the Parties to IndiGrid or IndiGrid. The information provided in the FAQs is basis IndiGrid’s reading of applicable law as it stands on the date of publication and is subject to change (basis any change in law or market practice) and the Parties to IndiGrid or IndiGrid do not have any obligation to update the FAQs from time to time. All readers should independently verify the adequacy and accuracy of information provided in the FAQs. To the full extent permissible under applicable law, IndiGrid disclaims all warranties, express or implied, including, but not limited to, warranties of merchantability and fitness for a particular purpose, title, compatibility, security of information, accuracy, non-infringement, or arising from these FAQs. Further, to the full extent permissible under applicable law, neither IndiGrid nor any of its officers, directors, employees, representatives, agents, parent companies, subsidiaries, or affiliates will be liable for any damages of any kind, including, but not limited to, actual, direct, indirect, incidental, punitive, or consequential damages, or damages that may arise from the use of, or the inability to use, these FAQs or materials or information contained hereunder, whether the materials are provided by us or a third party. For easy reference, please find below list of email addresses unitholders can write to in case of queries:

Category of Query Email address for Correspondence
For all general queries including but not limited to non-receipt of distribution, form 64B, TDS certificates etc.
For queries related to IndiGrid’s business, strategy, growth plans etc.
Queries not responded by within 7 working days
For submission of tax/distribution related documents

Resident Individual Investors: In accordance with section 194A of the Income Tax Act (the Act), the withholding is required to be done at the rate of 10% on interest paid to residents. However, if an eligible resident investor provides a valid declaration in Form 15G/ 15H, tax will not be deducted.

Resident Non-Individual Investors: no TDS shall be deducted on submission of the following documents:

Insurance Companies ·        Declaration that they are beneficial owners of NCDs held.
·        Self-attested copy of relevant registration documents.
·        Self-attested copy of PAN.
Mutual Funds ·        Declaration that they are governed by provisions of section 10(23D) of the Income Tax Act.
·        Self-attested copy of relevant registration documents.
Alternative Investment Funds (AIF) established in India ·        Declaration that their income is exempt under section 10(23FBA) of the Income Tax Act.
·        Declaration that they are established as Category – I or Category – II AIF under the SEBI regulations.
·        Self-attested copy of relevant registration documents.
·        Self-attested copy of PAN.

Entities whose income is unconditionally exempt under section 10 of the Income Tax Act and that are statutorily not required to file return of income, being exempted from TDS by the CBDT Circular No. 18 of 2017, are required to provide self-attested valid documentary evidence (like approval granted by Income Tax Officer / Commissioner, relevant copy of registration, etc.)

Government ·        Documentary evidence and self-declaration that it is a Corporation set up under specific legislation whose income is exempt from any income-tax and can be considered as ‘Government’ and qualify for exemption under section 196 of the Act.
National Pension Scheme Trust ·        Registration certificate/ self-declaration that the it qualifies as NPS Trust for the purpose of section 197A(1E) of the Act, and that its income is eligible for exemption under section 10(44) of the Act.

Note:  It may be noted that as per the provisions of section 206AA of the Act, tax shall be deducted at the rate of 20% in case defective/ invalid/ inoperative PAN is submitted by the investor. Further, If the returns for either of the preceding two years are not filed by the investors within the prescribed timelines, then tax would be deducted at source @ 20% as per section 206AB of the Act.

Non-Resident Individual Investors: Tax is required to be withheld in accordance with the provisions of section 195 and other applicable sections of the Income Tax Act, at the rates in force.

The withholding tax shall be at the rate of 40% (in case of companies) / 30% (in case of other than companies) (plus applicable surcharge and cess) or as notified by the Government of India on the amount of interest payable.

However, as per section 90 of the Act, non-resident investors have the option to be governed by the provisions of the Double Tax Avoidance Agreement (‘DTAA’), read with Multilateral Instrument (‘MLI’) between India and the country of tax residence of the investor, if those provisions are more beneficial to them. For this purpose, i.e., to avail the benefits under the DTAA read with MLI, non-resident investor will have to provide the following:

  • – Self-attested copy of the PAN card allotted by the Indian income tax authorities.
  • – Self-attested copy of Tax Residency Certificate (TRC) for the financial year obtained from the revenue authorities of the country of tax residence;
    • — In case, the TRC is furnished in a language other than English, the said TRC would have to be translated to English language and thereafter, a duly notarized and apostilled copy of the TRC would have to be provided.
  • – Self-declaration in Form 10F.
  • – Any other documents as prescribed under the Act for lower withholding tax rates, if applicable, self-attested by the investor.

Foreign Institutional Investors / Foreign Portfolio Investors: tax will be deducted under Section 196D of the Act @ 20% (plus applicable surcharge and cess) or the rate provided in relevant DTAA, read with MLI, whichever is more beneficial, subject to the submission of the above documents.

Yes. Eligible NCD holders shall share there duly filled form 15G/H at the beginning of financial year before interest payment. The forms can be submitted in following manner:

  1. 1. By sending email to
  2. 2. Online submission at
  • -To receive interest/redemption payment in due time
  • -To receive copies of the Annual Report containing the Balance Sheet, the Profit & Loss Account, and the Auditor’s Report.
  • -To approach the Debenture Trustee with your grievance, if any.
  • -Other rights are as specified in the statutory enactments / Debenture Trust Deed.