The finance ministry clarified on Wednesday that foreign portfolio investors (FPIs) will continue to enjoy 5% withholding tax on interest income earned in debt securities. The finance ministry said in a press release that FPIs will continue to avail lower withholding tax through another section of Income Tax Act even after the deletion of the provision. “It is hereby clarified that there is no change in the said proviso even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the concessional rate of tax of 5% shall continue to be applicable for interest income referred to in section 194LD of the Act,” said the release. ET reported on Wednesday that FPIs betting on Indian bonds may be subjected to 20% tax after a clause in the Income Tax Act was deleted that triggered concerns that their tax outgo would increase.