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Has your tax bond come under TDS net ?
June, 04th 2007
Eight per cent taxable bonds, floated by the government in 2003, will attract tax deduction at source (TDS) from Friday 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.
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