IDBI Tax Saver Bond

Hi I would like to have the information aout the Flexibonds offered by IDBI Bank as well as the details for Tax Deduction at Source from Interest Payment Details?

IDBI Bank had raised assets from retail financial specialists by issue of Flexibonds. Add up to issues made till FY 2005 were 25 (i.e. IDBI Bond Series I and II, Flexibonds 1-23).

Regarding the arrangements of IDBI (Issue and Management of Bonds) Amendment Regulations, 2002, the prerequisite for introduction of unique bond authentications for arrival of reclamation continues were apportioned in regard of recoveries due from FY 2002-03 onwards.

Tax Deduction at Source from Interest Payment Details

Enthusiasm on bonds is dealt with as enthusiasm on securities with the end goal of income-tax. Such intrigue is liable to TDS at winning rate (10% for inhabitant speculators). Where the expense is deducted at source, an endorsement to that impact in Form 16A is issued to the speculators whose PAN is accessible with the Registrar. On the off chance that the same is not gotten, the speculator may keep in touch with Registrar with full points of interest for issue of copy authentication. As far as the new arrangement identifying with TDS under the

Pay Tax Act 1961, with impact from April 1, 2010, charge at higher of the recommended rate or 20% will be deducted on all exchanges at risk to TDS, where PAN of the deductee is not accessible.

No Income Tax is, however deductible at source under the present arrangements of the Income Tax Act, on intrigue payable on bonds in regard of the accompanying cases:

• When the installment of enthusiasm on bonds to occupant singular bondholder in the total does not surpass Rs.5000/ - amid the money related year.

• When the inhabitant bondholder (not being an organization or a firm) presents a statement according to the arrangements of segment 197A of the Income Tax Act in the recommended Form 15G (alongwith duplicate of PAN Card) such that the assessment on his/her evaluated add up to pay including the enthusiasm on the securities for the significant year will be NIL, given the intrigue total the year does not surpass the most extreme sum which is not chargeable to Income Tax.

• Senior subjects, who are of the age of 65 years or more, can present a self announcement in endorsed Form 15 H (alongwith duplicate of PAN Card) for non-deduction of assessment.

• When the Assessing Officer issues a declaration according to arrangement of area

197(1) of the Income Tax Act for derivation of expense at source at a rate lower than the recommended rate/NIL rate. The authentication might not be legitimate, unless it bears PAN of the payee.

• Interest payable to specific classes of financial specialists, viz. Provident
/Superannuation/Gratuity Funds perceived by Income Tax Department also, different substances exempted from finding of duty at source by ideals of applicable warning/round.

• if there should be an occurrence of Deep Discount/Money Multiplier Bonds and securities with aggregate choice, as illuminated by Central Board of Direct Taxes, distinction between the issue cost and the recovery cost of the bond will be regarded as intrigue wage assessable under Income Tax Act in the time of reclamation and assessment will be deducted at source on this intrigue.

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Answered By StudyChaCha Member