CBDT grants TDS exemption on Maharajah Bond interest
In short
The Central Board of Direct Taxes said on October 19 that interest on eligible Maharajah Bonds will not face tax deducted at source in FY2026-27 and later years. The exemption applies to residents and foreign institutional investors.
This may make the bonds more attractive to buyers. The report does not say who issues the bonds or how the market has reacted.
What the reporting says
The Central Board of Direct Taxes issued a notification dated October 19 saying no tax will be deducted at source on interest paid to eligible Maharajah bondholders during financial year 2026-27 and later tax years, according to a publisher-supplied summary. The exemption covers residents and foreign institutional investors. The reporting does not state the bond issuer, coupon level, or market reaction.
Why it matters
The Central Board of Direct Taxes said in an October 19 notification that no tax will be deducted at source on interest paid to eligible Maharajah bondholders in financial year 2026-27 and subsequent tax years. The exemption applies to residents and foreign institutional investors, which may improve investor appeal. The reporting does not identify the issuer, pricing, or any trading response.