RBI 7.75% Bonds- Interest related query
This query is : Resolved
Nupur Sharma
(Querist)
14 May 2020
Hello,
My query is regarding 7.75% RBI Savings (Taxable) Bonds issued in January 2018. If I opt for the Cumulative option , how will the interest be credited to me? Will I receive the entire interest on maturity ? Or will it accrue every year and I will have to show it as income in my ITR every year?
In other words, will TDS be deducted in one go at the end of maturity when all interest is paid to me? Or will TDS be deducted every year on the interest amount that accrues to me every year?
Thanks in Advance
My query is regarding 7.75% RBI Savings (Taxable) Bonds issued in January 2018. If I opt for the Cumulative option , how will the interest be credited to me? Will I receive the entire interest on maturity ? Or will it accrue every year and I will have to show it as income in my ITR every year?
In other words, will TDS be deducted in one go at the end of maturity when all interest is paid to me? Or will TDS be deducted every year on the interest amount that accrues to me every year?
Thanks in Advance
CA Deepak Bora
(Expert)
16 May 2020
Hi Nupur, I had invested in RBI bonds and back then they had paid the entire amount on maturity along with interest. The TDS on interest was also deducted on payment only and not on yearly basis.
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