RBI 7.5% Savings Bonds- interest related query

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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

Replies (2)
In cumulative option your interest will get accrued on periodical basis and TDS will be deducted if total amount of interest credited exceeds notified slab as per Income Tax. At the end of every year you will get interest certificate mentioning interest credited and TDS details which can be used to file ITR.

My wife has brought RBI bonds last year with cumulative intrest options.. and she is house wife her annual income is less then 2 lacs annual. After 7 years when bonds got mature whether she will get full maturity amount or tax will be deducted, if tax deduction is applicable how can we save.. pls suggest

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