New FAQ Page 2 - RBI - Reserve Bank of India
Content Type:
Inflation Indexed National Saving Securities - Cumulative (IINSS-C)
- Existing taxation applicable to Government of India securities issued as part of the market borrowing will be applicable to these securities.
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Existing taxation applicable to Government of India securities will be applicable to these securities.
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Sub-section (iv) of the Section 193 of the Income Tax Act, 1961 stipulates that no tax shall be deducted from any interest payable on any security of the Central Government or a State Government, provided that nothing contained in this clause shall apply to the interest exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003 during the financial year.
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As per the above Section, TDS shall not be deducted from any interest payable on IINSS-C, until and unless notified by the Government of India otherwise.
- As customers will be owned by the banks, KYC will also be done by the banks.
- The customers should be issued the securities after receiving clear money. After receiving clear money, banks should register the customer on CBS and generate Certificate of Holding.
- The application form can be downloaded from the RBI’s website. However, banks shall also get forms printed and made available to the investors.
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Page Last Updated on: December 11, 2022
