SPECIFIC EXEMPTION CASES

   
 

Specific exemption from deduction of tax if Interest on securities is payable in the following cases:

  1. .
    1. Any interest payable on 4 per cent National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident,
    2. Any interest payable to an individual on 4 per cent National Defence Loan, 1968, or 4 per cent National Defence Loan, 1972,
    3. Any interest payable on National Development Bonds,
  2. .
    1. Any interest payable on 7-Year National Savings Certificates (IV Issue),
    2. Any interest payable on such debentures, issued by any institution or authority, or any public sector company, or any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank),
       
  3. Any interest payable on 6 per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, where the Bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6 per cent Gold Bonds, 1977, or, as the case may be, the 7 per cent Gold Bonds, 1980, held by him (including such bonds, if any, held on his behalf by any other person) did not in either case exceed ten thousand rupees at any time during the period to which the interest relates;
     
  4. Any interest payable on any security of the Central Government or a State Government [Provided that nothing contained in this clause shall apply to the interest exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003 during the financial year;]
     
  5. Any interest payable to an individual, who is resident in India, on debentures issued by a company in which the public are substantially interested, being debentures listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 , and any rules made thereunder, if
    1. The interest is paid by the company by an account payee cheque; and
       
    2. The amount of such interest or, as the case may be, the aggregate of the amounts of such interest paid or likely to be paid during the financial year by the company to such individual does not exceed [two thousand and five hundred rupees];]
       
  6. Any interest payable to the Life Insurance Corporation of India, in respect of any securities owned by it or in which it has full beneficial interest; or
     
  7. Any interest payable to the General Insurance Corporation of India or to any of the four Corporation or such company 
     
  8. Any interest payable to any other insurer in respect of any securities owned by it or in which it has full beneficial interest;]
     
  9. Any interest payable on any security issued by a company, where such security is in dematerialized form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956