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TMI Blog8% Savings (Taxable) Bonds, 2003 - Income Tax Act, 1961 - TDSX X X X Extracts X X X X X X X X Extracts X X X X ..... nds, 2003. In continuation thereof, the following clarifications, as furnished by CBDT, on a few more aspects of application of TDS on the captioned bonds are given below. Sl. No. Issue Comments 1. Whether TDS is required to be deducted only on new bonds purchased on and from 1.6.2007 or bonds purchased prior to that date when TDS was made applicable. Tax Deduction at Source on 8 % Savings (Taxable) Bonds, 2003 is effective from 1.6.2007. Any interest credited or paid on 8 % Savings (Taxable) Bonds, 2003 on or after 1.6.2007 will attract TDS if the amount of interest exceeds 10,000/- rupees for the financial year. Therefore, the date of investment is not a relevant factor. TDS would, thus, apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceed the maximum amount which is not chargeable to tax. 2. Declaration in form 15H can be accepted from an individual resident in India, who is of the age of sixty-five years or more at any time during the previous year if a. tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil 4 In case of 'cumulative' type of investments, interest is payable on the date of maturity. In such cases, whether the TDS is required to be deducted on entire interest payable on the date of maturity or on deemed date of payment i.e. on accrual basis every year. On 'cumulative' type of investments, if the interest is credited every year, tax deduction has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- rupees for the financial year. Hence, in this particular case if the half-yearly interest payable on 01.08.2007 is credited or paid on or after 01.06.2007, then tax is required to be deducted at source on the entire amount so credited or paid whichever is earlier. 2. We advise you to ensure that application of TDS on the captioned bonds is made in the light of the above clarifications and the relevant provisions of the Income Tax Act, 1961. You may issue suitable instructions to designated branches operating the scheme. You may also access this circular on our website www.rbi.org.in 3. Please acknowledge the receipt. Yours faithfully (Dr. Balu K.) Deputy General Manager - Circular - Trade Notice - Public Notice - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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