Bonds' coupon rate tax deduction and pledging option

[vinoth_kumar_s]

Hi,
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.

[ShubhS9]

@Bhuvan…

[Bhuvan]

@vinoth_kumar_s

• 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.

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

@vinoth_kumar_s

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

You need to check with the banks.

[vinoth_kumar_s]

Thanks @Bhuvan. It helps a lot.