How is the interest earned on these bonds taxed?

How is the interest earned on these bonds taxed?

There is no tax deductible at source on the interest paid by these bonds. But the interest earned on these bonds is taxable. You will need to pay tax on the interest income as advance tax.


    • Related Articles

    • How is interest on corporate bonds of public and private companies taxed?

      Interest on corporate bonds is taxable on accrual basis at slab rates. Since these are dematerialised and listed, there is no TDS and there is a possibility of capital gains arising from sale of the bonds which is taxed as per capital gains tax ...

    • How is the interest on my savings account taxed?

      Interest on savings account is taxable as per Income tax slab rates applicable to the investor. However, under section 80TTA, interest up to ₹10000 earned from all savings bank account is exempt from tax. This is also applicable to savings bank ...

    • Is there a deduction available on interest income from Fixed Deposits/Recurring Deposits?

      There is no deduction available on interest on FDs/RDs. The entire interest income earned from these is liable to be taxed on accrual basis at the slab rate applicable.

    • What is the Interest rate on such bonds?

      Currently, an interest rate (coupon rate) of 6%, payable annually, is being offered on this bond annually on 1st April and final interest is payable at the time of maturity. The interest is taxable.

    • Interest

      Any interest income received from saving bank account, FD/RD, income tax refund or any other mode. You can avail the benefit of Rs 10,000 U/S 80TTA from saving bank interest if age is below 60. If you are a senior citizen u can avail the benefit of ...