§ Dr. J. WILLIAMSasked the Secretary of State for India what were the rates of interest paid by the Government of India for sterling borrowing and rupee loans, respectively, in the years 1921–22, 1927–28, and 1929–30; and whether the Government of India have under consideration the possibility of increasing rupee loans in India in relation to sterling borrowing?
§ Sir S. HOAREDetails of all sterling and rupee loans of the Government of India are given in the various issues of the "Explanatory Memorandum" on the Indian Accounts and Estimates, which is presented to Parliament annually. It has been the policy of the Government of India to raise loans internally, to the greatest practicable extent; and the hon. Member is no doubt aware that, since the last sterling loan was raised in April, 1932, three large rupee loans have been successfully issued, while a fourth, which is in the nature of a conversion operation, is now open.
§ Mr. BANFIELDasked the Secretary of State for India whether he is aware that interest paid on sterling debt held in England is exempted from Income Tax in India; and whether steps will be taken to ensure that such interest shall be placed in the same category as interest on rupee loans in respect of liabilities to Indian Income Tax?
§ Sir S. HOAREInterest on Indian sterling loans paid to holders in this country is not liable to Indian Income Tax, and no question therefore arises of its exemption. The answer to the second part of the question is in the negative.