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Resident Indians, FIIs to get income tax exemption on NDB’s Maharaja Bonds
BusinessLine 1 hr ago·20 Oct 2026, 7:54 am
The government has announced that resident Indians and foreign institutional investors (FIIs) will no longer have to pay income tax on interest earned from the NDB's Maharaja bonds. This tax exemption applies to the rupee-denominated bonds issued by the New Development Bank (NDB), formerly known as the BRICS bank. The move is designed to make these investments more attractive by removing a key cost for investors.
This decision is significant for the broader market as it encourages foreign capital inflows and supports the government's efforts to deepen the domestic bond market. By offering a tax-free return on these specific instruments, the government aims to boost investor confidence in multilateral development bank bonds.
Investors should watch for the official notification and the specific eligibility criteria to ensure compliance. It is also important to compare the post-tax returns of these bonds with other fixed-income options to make an informed investment decision.
Excerpt from BusinessLine
Income Tax Department has notified tax exemption on interest earned from ‘Maharaja Bond’, issued by New Development Bank. Meanwhile, the department has also introduced a new form for exemption on government securities for Foreign Institutional Investors (FIIs). Tax exemption for Maharaja Bond interest In a…Read the original at BusinessLine
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