
{"id":12323,"date":"2026-02-27T11:17:11","date_gmt":"2026-02-27T11:17:11","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=12323"},"modified":"2026-09-10T12:00:50","modified_gmt":"2026-09-10T06:30:50","slug":"5-tax-filing-requirements-for-bond-investors","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/","title":{"rendered":"5 Tax Filing Requirements Every Bond Investor Should Know"},"content":{"rendered":"<div class=\"gpi-custom-widget-box\" style=\"border-left-color: #0066cc; background-color: #f0f7ff;\">\n<div class=\"gpi-custom-widget-title\" style=\"color: #0066cc;\">\ud83d\udcdd Quick Summary:<\/div>\n<h2 class=\"gpi-custom-widget-h2-content\"><span class=\"ez-toc-section\" id=\"When_filing_taxes_as_a_bond_investor_you_must_report_coupon_interest_under_%E2%80%9CIncome_from_Other_Sources%E2%80%9D_disclose_capital_gains_from_secondary_market_sales_verify_and_claim_Tax_Deducted_at_Source_TDS_credits_choose_the_correct_Income_Tax_Return_ITR_form_and_report_any_foreign_bond_holdings\"><\/span><span data-subtree=\"aimfl,mfl\" data-copy-service-computed-style=\"font-family: &quot;Google Sans&quot;, Arial, sans-serif; font-size: 16px; font-weight: 400; margin: 0px; text-decoration: none; border-bottom: 0px rgb(10, 10, 10);\">When filing taxes as a bond investor, you must report coupon interest under &#8220;Income from Other Sources,&#8221; disclose capital gains from secondary market sales, verify and claim Tax Deducted at Source (TDS) credits, choose the correct Income Tax Return (ITR) form, and report any foreign bond holdings<\/span>.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n\n\n<p>When you invest in bonds, you can earn income from two main sources. The first is interest income, which you receive periodically from the bond issuer. The second is capital gains, which may arise if you sell the bond in the secondary market before its maturity.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#When_filing_taxes_as_a_bond_investor_you_must_report_coupon_interest_under_%E2%80%9CIncome_from_Other_Sources%E2%80%9D_disclose_capital_gains_from_secondary_market_sales_verify_and_claim_Tax_Deducted_at_Source_TDS_credits_choose_the_correct_Income_Tax_Return_ITR_form_and_report_any_foreign_bond_holdings\" >When filing taxes as a bond investor, you must report coupon interest under &#8220;Income from Other Sources,&#8221; disclose capital gains from secondary market sales, verify and claim Tax Deducted at Source (TDS) credits, choose the correct Income Tax Return (ITR) form, and report any foreign bond holdings.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#Want_to_Remain_Tax_Compliant_5_Tax_Filing_Requirements_You_Must_Complete_for_FY_25-26\" >Want to Remain Tax Compliant? 5 Tax Filing Requirements You Must Complete for FY 25-26<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#FY_2026%E2%80%9327_Tax_Rule_Updates_for_Bond_Investors\" >FY 2026\u201327 Tax Rule Updates for Bond Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#1_Reporting_Interest_Earned_from_Bonds\" >1. Reporting Interest Earned from Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#2_Reporting_Capital_Gains_if_Bonds_are_Sold_Before_Maturity\" >2. Reporting Capital Gains if Bonds are Sold Before Maturity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#3_Proper_TDS_Reporting_Raising_Claims\" >3. Proper TDS Reporting + Raising Claims<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#4_Choose_the_Correct_ITR_Form\" >4. Choose the Correct ITR Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#5_Disclosure_of_Foreign_Bond_Investments_in_ITR\" >5. Disclosure of Foreign Bond Investments in ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#In_Summary_Bond_Investors_Must_Correctly_Report_Income_Verify_TDS_and_Select_the_Right_ITR_Form_in_2026\" >In Summary, Bond Investors Must Correctly Report Income, Verify TDS, and Select the Right ITR Form in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-tax-filing-requirements-for-bond-investors\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>Under the Income Tax Act, 1961, both these <a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/capital-gains-vs-interest-income-whats-more-tax-friendly\/\">types of income are taxable<\/a> and create different filing requirements. To remain compliant with tax rules and avoid penalties or notices, it is important to understand these obligations.<\/p>\n\n\n\n<p>This article explains five major tax filing requirements related to bond investments that you should be aware of for FY 2025\u201326 (AY 2026\u201327), along with key tax-rule updates applicable from FY 2026\u201327.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Want_to_Remain_Tax_Compliant_5_Tax_Filing_Requirements_You_Must_Complete_for_FY_25-26\"><\/span>Want to Remain Tax Compliant? 5 Tax Filing Requirements You Must Complete for FY 25-26<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As an investor, the first step toward tax compliance is assessing which tax regime works better for you. Under the Income Tax Act, 1961, taxpayers can choose between the old tax regime and the new tax regime.<\/p>\n\n\n\n<p>To make the right selection, you may:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Calculate your total tax liability under both regimes<\/li>\n\n\n\n<li>Select the one that results in lower tax outgo<\/li>\n<\/ul>\n\n\n\n<p>Once the suitable regime is selected, you may complete the following five tax filing requirements for FY 2025\u201326:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FY_2026%E2%80%9327_Tax_Rule_Updates_for_Bond_Investors\"><\/span>FY 2026\u201327 Tax Rule Updates for Bond Investors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From April 1, 2026, the Income-tax Act, 2025 applies to the new tax year. This means that income-tax and TDS provisions applicable from FY 2026\u201327 need to be read under the new Act rather than the Income-tax Act, 1961.<\/p>\n\n\n\n<p>For FY 2025\u201326 (AY 2026\u201327), however, the Income-tax Act, 1961 continues to govern the income earned during that financial year. Therefore, taxpayers filing their return for FY 2025\u201326 should continue to apply the provisions of the 1961 Act.<\/p>\n\n\n\n<p>One relevant TDS update for bond investors is the threshold for interest on securities. For FY 2025\u201326, the threshold for deduction of TDS on interest on securities was increased to \u20b910,000. Under the Income-tax Act, 2025, Section 393 also provides a \u20b910,000 threshold for TDS on interest on securities for the new tax year.<\/p>\n\n\n\n<p>This means investors should check both the applicable TDS threshold and the law applicable to the relevant financial year when reviewing their bond-interest and TDS records.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Reporting_Interest_Earned_from_Bonds\"><\/span>1. Reporting Interest Earned from Bonds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the Income Tax Act, 1961, income must be reported under five different heads:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Income from Salary<\/li>\n\n\n\n<li>Income from House Property<\/li>\n\n\n\n<li>Profits and Gains from Business or Profession (PGBP)<\/li>\n\n\n\n<li>Capital Gains<\/li>\n\n\n\n<li>Income from Other Sources<\/li>\n<\/ul>\n\n\n\n<p>Now, the coupon interest you receive from bonds must be reported under the head \u201cIncome from Other Sources.\u201d For tax purposes, this interest income is treated similarly to <a href=\"https:\/\/goldenpi.com\/blog\/fixed-deposit\/how-much-tax-is-deducted-on-fd-interest\/\">interest earned from bank fixed deposits<\/a>. 100% of the interest amount is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Added to your total taxable income<\/li>\n\n\n\n<li>Taxed according to your applicable income tax slab rate<\/li>\n<\/ul>\n\n\n\n<p>Additionally, the income must be reported when it becomes due or on an \u201caccrual basis\u201d. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Suppose you purchased a bond that pays \u20b910,000 as annual interest every March.<\/li>\n\n\n\n<li>Assume that the interest for FY 2025\u201326 becomes due on March 31, 2026.<\/li>\n\n\n\n<li>Now, it must be reported as income for FY 2025\u201326 even if the payment is credited to your account in April 2026.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Reporting_Capital_Gains_if_Bonds_are_Sold_Before_Maturity\"><\/span>2. Reporting Capital Gains if Bonds are Sold Before Maturity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you sell a bond in the secondary market before its maturity date, the difference between the selling price and your purchase price is treated as capital gain or capital loss. This amount must be reported separately under the head \u201cCapital Gains.&#8221;<\/p>\n\n\n\n<p>The tax treatment depends on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Was the bond listed or unlisted?<\/li>\n\n\n\n<li>How long did you hold it before selling?<\/li>\n<\/ul>\n\n\n\n<p>Firstly, let\u2019s check out the latest <a href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/corporate-bonds\/how-are-corporate-bonds-taxed\/\">bond taxation rules<\/a> related to \u201clisted bonds\u201d (after considering the amendments introduced in the Union Budget 2025):<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Holding Period<\/strong><\/th><th><strong>Type of Capital Gain<\/strong><\/th><th><strong>Tax Treatment<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Less than 12 months<\/td><td>Short-Term Capital Gain (STCG)<\/td><td>Taxed at the investor\u2019s applicable income tax slab rate<\/td><\/tr><tr><td>12 months or more<\/td><td>Long-Term Capital Gain (LTCG)<\/td><td>Taxed at 12.5% without indexation<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>Whereas, if we talk about the tax treatment for \u201cunlisted bonds\u201d, as per Section 50AA, any unlisted bond that is transferred, matured, or redeemed on or after July 23, 2024, will always be treated as STCG (regardless of how long the bond was held). Thus, the profit will be taxed at the taxpayer\u2019s applicable income tax slab rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Proper_TDS_Reporting_Raising_Claims\"><\/span>3. Proper TDS Reporting + Raising Claims<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Section 193, TDS on interest on securities is generally deducted at 10%, subject to applicable exemptions and thresholds. For FY 2025\u201326, the threshold for deduction of TDS on interest on securities is \u20b910,000.<\/p>\n\n\n\n<p>When filing your ITR, you must verify that any TDS deducted is correctly reflected in Form 26AS and the Annual Information Statement (AIS) available on the Income Tax Department portal.<\/p>\n\n\n\n<p>Let\u2019s check out some actions you may take:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Filing Requirements<\/strong><\/th><th><strong>What You Should Do<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Check Tax Records<\/strong><\/td><td>Verify that the TDS deducted on your interest income from bonds appears in both Form 26AS and AIS. Note that any mismatch between the TDS records and your reported income may increase the risk of scrutiny or tax notices.<\/td><\/tr><tr><td><strong>Match the Income<\/strong><\/td><td>If you are filing your return online on the Income Tax Department portal, the system usually \u201cprefills\u201d certain income details automatically. Review these prefilled figures and make sure they correctly reflect the actual interest income earned from bonds during the financial year.<\/td><\/tr><tr><td><strong>Claim the Credit<\/strong><\/td><td>Claim the deducted TDS while filing your ITR. Failure to do so may lead to an unnecessarily <a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/bond-washing-for-tax-avoidance\/\">higher income tax liability<\/a>.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>For FY 2026\u201327, the corresponding TDS provisions are contained in the Income-tax Act, 2025. Section 393 covers TDS on interest on securities and provides a \u20b910,000 threshold. Investors should therefore check the applicable provisions for the tax year in which the interest is credited or paid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Choose_the_Correct_ITR_Form\"><\/span>4. Choose the Correct ITR Form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While filing your income tax return, you must select the correct ITR form (available from ITR-1 to ITR-7) and submit it before the prescribed due date. It is highly important because filing under the wrong form may lead to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Processing delays<\/li>\n\n\n\n<li>Defective return notices<\/li>\n\n\n\n<li>The need to revise the return later.<\/li>\n<\/ul>\n\n\n\n<p><em>So, which ITR form may be used by the bond investors?<\/em> You may consider the following:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>When You Can Use ITR-1<\/strong><\/th><th><strong>When You Should Use ITR-2<\/strong><\/th><\/tr><\/thead><tbody><tr><td>You can file ITR-1 (Sahaj) if you only have interest income and there are no capital gains from selling bonds, subject to other conditions.<\/td><td>If you sold bonds before maturity and earned capital gains, you cannot use ITR-1. In such cases, you must file ITR-2, subject to conditions. This ITR form allows taxpayers to report both STCG and LTCG.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>However, realize that both ITR-1 and ITR-2 cannot be used if you have income from a business or profession that is taxable under \u201cProfits and Gains from Business or Profession (PGBP).&#8221; In such cases, ITR-3 or ITR-4 may apply, subject to conditions:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Situation<\/strong><\/th><th><strong>ITR Form<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Business or professional income under \u201cnormal taxation.\u201d<\/td><td>ITR-3<\/td><\/tr><tr><td>Business income under the \u201cpresumptive taxation\u201d scheme (subject to eligibility limits).<\/td><td>ITR-4<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Disclosure_of_Foreign_Bond_Investments_in_ITR\"><\/span>5. Disclosure of Foreign Bond Investments in ITR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If any Resident and Ordinarily Resident (ROR) investor holds foreign bond investments (such as US Treasury bonds or foreign corporate bonds), these holdings must be disclosed in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Schedule FA (Foreign Assets)<\/li>\n\n\n\n<li>Schedule FSI (Foreign Source Income).<\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s check out the various filing requirements in this segment:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Schedule in ITR<\/strong><\/th><th><strong>What It Is Used For<\/strong><\/th><th><strong>What You Must Report<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Schedule FA<\/strong><\/td><td>It is used by eligible taxpayers to disclose foreign assets.<\/td><td>Details of foreign assets such as bank accounts, stocks, bonds, and immovable property held outside India during the relevant reporting period.<\/td><\/tr><tr><td><strong>Schedule FSI<\/strong><\/td><td>It is used to report income earned outside India.<\/td><td>Income such as foreign interest, dividends, or capital gains from overseas investments.<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n<p>Additionally, if taxes have already been paid in another country on the same income, such taxpayers may claim relief under the Double Taxation Avoidance Agreement (DTAA). This relief is claimed in Schedule TR (Tax Relief) in the ITR.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_Summary_Bond_Investors_Must_Correctly_Report_Income_Verify_TDS_and_Select_the_Right_ITR_Form_in_2026\"><\/span>In Summary, Bond Investors Must Correctly Report Income, Verify TDS, and Select the Right ITR Form in 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now you are aware of the several tax filing requirements that apply when you invest in bonds. By meeting these obligations, you remain compliant and reduce the risk of attracting notices or scrutiny from the Income Tax Department.<\/p>\n\n\n\n<p>For FY 2025\u201326 (AY 2026\u201327), the five tax filing requirements you must satisfy are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Report bond coupon interest under \u201cIncome from Other Sources.\u201d<\/li>\n\n\n\n<li>Disclose capital gains from selling bonds before maturity.<\/li>\n\n\n\n<li>Verify TDS records and claim the correct credit in ITR.<\/li>\n\n\n\n<li>Choose the correct ITR form based on your income sources.<\/li>\n\n\n\n<li>Disclose foreign bond holdings in Schedule FA and FSI, if applicable.<\/li>\n<\/ul>\n\n\n\n<p>For FY 2026\u201327 onwards, investors should also remember that the Income-tax Act, 2025 applies to the new tax year from April 1, 2026. The TDS provisions have been reorganised under the new Act, including the provision covering interest on securities. Therefore, when reviewing TDS on bond interest, investors should check the provisions applicable to the relevant tax year rather than relying only on the section numbers used under the Income-tax Act, 1961.<\/p>\n\n\n\n<p><i><span style=\"font-weight: 400;\">Are you searching for corporate bonds online? <\/span><\/i><span style=\"font-weight: 400;\">You may start investing through GoldenPi, a SEBI-registered debt broker and OBPP (Online Bond Provider Platform) license holder. Here, you can explore multiple bond options, including <\/span><a href=\"https:\/\/goldenpi.com\/collections\/highly-rated-bonds\"><span style=\"font-weight: 400;\">AAA or AA-rated bonds<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/goldenpi.com\/collections\/state-government-guranteed-bonds\"><span style=\"font-weight: 400;\">state government-guaranteed bonds<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/goldenpi.com\/collections\/bonds-for-short-term-investment\"><span style=\"font-weight: 400;\">short-term bonds<\/span><\/a><span style=\"font-weight: 400;\">, and more.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><span style=\"font-weight: 400;\">FAQs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1785826230026\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">1. Is interest income from bonds taxable at a special rate?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">No, interest earned from bonds is taxed according to your applicable income tax slab rate. Special rates only apply to long-term capital gains, which are taxed at 12.5%.\u00a0<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785826241574\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">2. What is the due date for filing an income tax return (ITR)?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">As per the latest amendments introduced in the Union Budget 2026, the due date for filing ITR for individuals (without audit requirements) is 31st August of the assessment year. This rule is applicable for FY 26-27 (AY 27-28). However, for the current FY 2025\u201326 (AY 2026\u201327), the due date is 31st July.<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785826258386\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">3. Which ITR form should bond investors select?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">The correct form depends on the type of income you have. As a bond investor, if you only have interest income, you may use ITR-1, provided other eligibility conditions are satisfied. However, if you also have capital gains from selling bonds, you must file ITR-2. In contrast, if you have income taxable u\/h PGBP, you may choose from ITR 3 or 4.<\/span><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785826271555\"><strong class=\"schema-faq-question\">Q<span style=\"font-weight: 400;\">4. What to do if there is a mismatch between the TDS deducted and Form 26AS?<\/span><\/strong> <p class=\"schema-faq-answer\"><span style=\"font-weight: 400;\">If the TDS deducted on bond interest does not appear correctly in Form 26AS, you may contact the bond issuer or deductor and request them to correct their TDS return. 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\"https:\/\/goldenpi.com\/blog\/\",\n    \"name\": \"GoldenPi | Blogs\",\n    \"description\": \"All about bonds online in India\"\n  }\n]\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udcdd Quick Summary: When filing taxes as a bond investor, you must report coupon interest under &#8220;Income from Other Sources,&#8221; disclose capital&hellip;<\/p>\n","protected":false},"author":8,"featured_media":12337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[25],"tags":[913,914],"class_list":["post-12323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-news","tag-tax-filing-requirements","tag-tax-filing-requirements-for-bond-investors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Tax Filing 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