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of <h1>India Introduces 7.75% GOI Savings Bonds, 2018; TDS Applies for Interest Over Rs. 10,000 u/s 193. Effective April 1.</h1> The Government of India has replaced the 8% Savings (Taxable) Bonds, 2003 with the new 7.75% GOI Savings (Taxable) Bonds, 2018. Interest from these bonds remains taxable, and tax deduction at source (TDS) will apply under section 193 of the Act. TDS will be deducted when interest payments exceed ten thousand rupees to residents. If the interest is ten thousand rupees or less, no TDS will be deducted. These changes are effective from April 1, 2018.
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