TDS on Redemption Premium on OFCB
Kind attention of the Bond holders who do not wish to exercise option of conversion is drawn that the Bonds are due for redemption on 16.8.2013. The redemption premium payable is Rs. 6000/- per Bond which is subject to tax deduction as source (TDS) @ 10% as per Section 194A of the Income Tax Act, 1961.
If the total income of the Bond holder being an individual or a person (not being a company or a firm) including the income from the aforesaid bonds is less than the maximum amount which is not chargeable to income tax for the previous year ending on 31.3.2014 relevant to the assessment year 2014-15, you are requested to send to us two copies of the Form 15G/ 15H, as applicable duly signed for availing non deduction of tax as aforesaid.