What are the taxation for bonds?

Interest earned on bonds is subject to a flat 10% TDS (Tax Deducted at Source), deducted by the NBFC before payment. The remaining amount is credited to your demat-linked bank account. 
 

The interest earned is taxable as on your tax slab.

The NBFC will deposit the TDS within 7 days of the month’s end and file the TDS return within 30 days after the quarter ends. This will reflect in your Form 26AS within 45 days after the quarter ends.

It’s recommended to consult with a tax advisor for guidance on how to proceed with tax filing.