Section 14 — Tax Deduction at Source

(i) Tax will be deducted at source while making payment of interest on the Non-Cumulative Bonds from time to time and credited to Government Account.
(ii) Tax on the interest portion of the maturity value will be deducted at source at the time of payment of the maturity proceeds on the Cumulative Bonds andcredited to Government Account.
Provided that tax will not be deducted while making payment of interest/maturity proceeds, as the case may be, to individual/s who have made a declarationin the application form that they have obtained exemption from tax under the relevant provisions of the Income Tax Act, 1961 and have submitted a true copyof the certificate obtained from Income Tax Authorities.