The Central Board of Direct Taxes (CBDT), on October 19, 2026, has exempted interest payments on Maharajah INR Bonds issued by the New Development Bank from tax deduction at source (TDS) for eligible holders from tax year 2026-27 onwards.
The following has been stated:
No TDS shall be deducted on interest payments made by the New Development Bank to holders of Maharajah INR Bonds issued during tax year 2026-27 and subsequent tax years, under the specified provisions of section 393 of the Income-tax Act, 2025.
The exemption applies to holders who are residents or Foreign Institutional Investors (FIIs) as referred to in section 210(6) of the Act.
The New Development Bank is required to furnish the prescribed information under Schedule VII, Table Sl. No. 49 of the Income-tax Act, 2025 and the Income-tax Rules, 2026. The notification comes into force from the date of its publication in the Official Gazette.
[S.O. 5694(E).]
