CBDT exempts interest payments on rupee-denominated bonds issued by New

Benchmarks Nifty22,888.95-257.21FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.64 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper CBDT exempts interest payments on rupee-denominated bonds issued by New Development Bank from TDSET OnlineLast Updated: Oct 19, 2026, 10:20:00 PM ISTSynopsis

The exemption applies to holders of Maharajah INR Bonds who are Indian residents or foreign institutional investors, for the 2026-27 tax year and subsequent tax years.

Listen to this article in summarized format

Loading...×The Central Board of Direct Taxes (CBDT) said in a notification issued on October 19 that it has exempted interest payments on rupee-denominated bonds issued by the New Development Bank from tax deduction at source for eligible investors.

According to the notification, the exemption applies to holders of Maharajah INR Bonds who are Indian residents or foreign institutional investors, for the 2026-27 tax year and subsequent tax years.

A Maharajah bond is an onshore, rupee-denominated bond issued within India. It is issued and settled in rupee (INR) rather than in foreign currencies.

This bond is sold inside India's domestic markets to both local and foreign institutional investors. This makes it different from Masala bonds, which are issued outside India -- in global markets.

The New Development Bank (NDB), established in 2015 by Brazil, Russia, India, China and South Africa (BRICS), is a multilateral lender that finances development projects in emerging markets and developing countries (EMDCs).

Live Events

NDB's rupee bond programme is intended to strengthen India's domestic capital markets and enable the bank to fund projects in local currency, thereby limiting exchange-rate risks for borrowers, the bank's website notes.

Also read | Global investors against use of judicial anti-avoidance rule by tax officials

According to an ET report published in August 2026, the NDB plans to invest $7.5 billion in India over five years. The BRICS-backed lender aims to expand local-currency financing, offering emerging economies alternatives to funding denominated in dollars.

The bank is drawing up its General Strategy for 2027-2031, which will define its lending priorities and the allocation of funds among countries.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News oncbdtnew development bankmaharajah INR bondrupee bondBRICS bankbond investment
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News oncbdtnew development bankmaharajah INR bondrupee bondBRICS bankbond investment Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition

• Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat

• War's second-order effects are becoming visible in critical sectors

• US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?

• Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects

• What is the real impact of 13x jump in cash transfers to women?

• Airlines Q2 turbulence: Fewer passengers, rising fares and a crude shock

• 1
• 2
• 3

View all StoriesContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in