Section 10(15)(iid) in The Income- Tax Act, 1995

Central Government Act

(iid) 7[ interest on such bonds, as the Central Government may, by notifications in the Official Gazette, specify, arising to-

(a) a non- resident Indian, being an individual owning the bonds, or

(b) any individual owning the bonds by virtue of being a nominee or survivor of the non- resident Indian; or

999999. -- maximum amount which is permitted to be invested therein; (ia) annual payment on National Defence Gold Bonds, 1980; (ib) premium on the redemption of Special Bearer Bonds, 1991; (ii) interest on Treasury Savings- Deposit Certificates, Post Office Cash Certificates, Post Office National Savings Certificates, National Plan Certificates, Twelve- Year National Plan Savings Certificates and such other certificates, issued by the Central. Government as that Government may, by notification in the Official Gazette, specify in this behalf, interest on deposits in Post Office Savings Bank and bonus in respect of deposits under the Post Office Cumulative Time Deposits Rules, 1981, to the extent to which the amounts of such certificates or deposits do not exceed in each case the maximum amount which is permitted to be invested or deposited therein: Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item (6) in the Table below rule 4 of the Post Office Savings Account Rules, 1981, exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub- clause shall be two thousand two hundred and fifty rupees; (iia) interest on fixed deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette, to the extent to which the amounts of such deposits do not exceed, in each case, the maximum amount which is permitted to be deposited therein."

2. Inserted by the Finance Act, 1982, w. e. f. 1- 4- 1983.

3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983.

5. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989.

6. The 9 Relief Bonds 1987, notified by notification dated 17- 11- 1987, shall be deemed to have been notified for the purposes of this sub- clause:

7. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w. e. f. 1- 4- 1989.

8. The NRI Bonds, 1988 and NRI Bonds (Second Series) have been notified.

(c) any individual to whom the bonds have been gifted by the nonresident Indian: Provided that the aforesaid bonds are purchased by a non- resident Indian in foreign exchange and the interest and principal received in respect of such bonds, whether on their maturity or otherwise, is not allowable to be taken out of India: Provided further that where an individual, who is a non- resident Indian in any previous year in which the bonds are acquired, becomes a resident in India in any subsequent year, the provisions of this subclause shall continue to apply in relation to such individual: Provided also that in a case where the bonds are uncashed in a previous year prior to their maturity by an individual who is so entitled, the provisions of this sub- clause shall not apply to such individual in relation to the assessment year relevant to such previous year. Explanation.- For the purposes of this sub- clause, the expression" non- resident Indian" shall have the meaning assigned to it in clause (e) of section 115C;]