Effective from 10th January'2018, the Government of India replaced 8% Government of India Savings (taxable) bonds, with new 7.75% Government of India Savings (taxable) bonds.Since bonds are issued on behalf of the Government of India, it is the safest investment any investor can look for.

Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.Tax will be deducted at source (TDS) while interest is paid.

Features of RBI Bonds

Types of Bonds Taxable Bond
Issuer Government OF India
Min Invest Amt Rs 1000/-
Max Invest Amt No Limit
Interest 7.75% p.a
Type of Bonds Cumulative & Non-Cumulative
Tenure 7 Years
Type Of A/c Bond Ledger A/c
Nomination Facility Available
Transferability Not Transferable
Eligible Investors Individual & HUF
Tax Interest is Taxable & also TDS is applicable

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