Frequently Asked Questions

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Taxation on Returns

What is the tax rate on the interest earned from bonds?


Interest on bonds issued by companies is subject to 10% TDS if the annual interest exceeds ₹5,000 per issuer for resident individuals and HUFs.However, tax-free bonds and government securities (including Sovereign Gold Bonds) are exempt from TDS.Please note, the interest earned is taxable as per your income tax slab, even if TDS is not deducted.