HIGHLIGHTS OF TAX BENEFITS

• Interest from these Bonds do not form part of total income as per provisions of Section 10 (15) (iv) (h) of Income Tax Act, 1961 read along with Section 14A (1) of the Income Tax Act.
• Since the interest Income on these bonds is exempt, no tax deduction at source (“TDS”) is required. However, interest on application money would be liable for TDS as well as tax as per present tax laws.
• Wealth Tax is not levied on investment in bonds under section 2(ea) of the Wealth-tax Act, 1957