Govt to issue tax clarification for rupee-linked bonds soon

The government is likely to come out with tax clarifications with respect to rupee-linked bonds that were first proposed by the Reserve Bank of India in June, sources said.Issues such as withholding tax, capital gains etc will clarified.Rupee-linked bonds were proposed as an alternative to external commercial borrowings with the aim of shifting exchange-rate risk from issuer to borrower.Everything else in the rupee-linked bonds will have a similar structure to ECBs.