MUMBAI: Eight per cent taxable bonds, floated by the Government in
2003, will attract tax deduction at source (TDS) from today on
interest exceeding Rs 10,000 in a year.
"Tax is required to be deducted at source on the interest exceeding Rs
10,000 payable during the financial year on 8 per cent Savings
(Taxable) Bonds, 2003 with effect from June 1, 2007," Reserve Bank of
India (RBI) said in a communication to the banks.
The Government has floated the eight per cent taxable bonds in 2003
with a maturity of six years. The interest was payable on non-
cumulative bonds half yearly and cumulative bonds on maturity. These
bonds were initially exempted from TDS on the interest amount. - PTI
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