Positive impactStocks
Finance Ministry exempts interest on NDB's Maharaja Bonds from TDS: What changes for resident investors and FIIs?
Mint 1 hr ago·21 Oct 2026, 2:20 am
The Finance Ministry has announced that interest income from the New Development Bank's Maharaja INR Bonds will not be subject to Tax Deducted at Source (TDS) for eligible investors. This exemption applies to both resident investors and Foreign Institutional Investors (FIIs) for the tax year 2026-27, making the bonds more attractive by simplifying the tax filing process.
This move is significant as it reduces the administrative burden and potential tax liability for investors, allowing them to retain more of their returns. For retail investors, this makes the bonds a potentially more appealing option compared to other fixed-income instruments that may have complex tax structures.
Investors should watch for the official notification and the specific eligibility criteria. It is also important to compare the post-tax returns of these bonds with other available fixed-income options to ensure they offer the best value for their portfolio.
Excerpt from Mint
The Ministry of Finance has exempted interest payments on the New Development Bank’s Maharaja INR Bonds from TDS for eligible resident investors and foreign institutional investors from the tax year 2026-27. The Ministry of Finance has exempted interest payments on Maharaja INR Bonds issued by the New Development Bank…Read the original at Mint
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