Financial Daily from THE HINDU group of publications
Thursday, Jan 15, 2004
Financial Daily from THE HINDU group of publications Thursday, Jan 15, 2004 |
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Industry & Economy
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Income Tax Interest from 8 pc taxable savings bond exempted from TDS Our Bureau
New Delhi , Jan. 14 THE Government has exempted interest earned on the 8 per cent Savings (Taxable) Bonds, 2003 from tax deduction at source (TDS). These bonds will, however, remain taxable, with assessees required to declare the interest income earned and pay tax accordingly at the time of filing returns, officials clarified. All that the Department of Economic Affairs (DEA) has done, they added, was to delete paragraph 14 of its earlier notification, dated March 24. The particular paragraph provided that "tax will be deducted at source while making payment of interest on the non-cumulative bonds from time to time and credited to Government account" and "tax on the interest portion of the maturity value will be deducted at source at the time of payment of the maturity proceeds on the cumulative bonds and credited to the Government account". This paragraph has now been deleted, with the DEA issuing a separate notification in this regard. Besides the 8 per cent taxable savings bonds, issued from April 21, 2003, the Government had also notified the issue of 6.5 per cent Savings Bonds, 2003 (Non-Taxable), with effect from March 24.
More Stories on : Income Tax | Small Savings
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