Bonds' coupon rate tax deduction and pledging option

I would like to know, when I am getting interest (coupon rate) for purchased taxable bond,

  1. When will be the tax deducted ? Is it while paying interest (like deducting tax and pay the remaining interest amount) or at the end of the financial year I have to show interest as my income and calculate tax based on slab.

  2. In case if I need money and I cant able to sell bond , can I pledge bonds in banks and get the loan ?

Thank you all in advance.


No TDS. You need to pay the tax on the interest

You need to check with the banks.

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Thanks @Bhuvan. It helps a lot.