8% rbi bonds

Yes, interest earned on RBI Bond is taxable. 

Notification 7.75% Savings (Taxable) Bonds 2018 S.O

.……….(E):

The Government of India, hereby notifies the issue of 7.75% Savings (Taxable) Bonds, 2018 (“the Bonds”) from January 10, 2018 until further notice.

The terms and condition of the issue of the Bonds, shall be as follows:

Tax Treatment:

(i) Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bond holders.

(ii) The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957.