How to Avoid Double Taxation on GOI Savings Bonds Interest Deducted at Maturity

Investors holding 2018 Government of India Savings Bonds with 7.75% annual interest may face double taxation issues as RBI deducted TDS on the entire interest at maturity, while some reported interest yearly on an accrual basis in their tax returns. Tax experts advise filing Form 71 with the Income Tax Department to distribute TDS credit across relevant assessment years, aligning tax credits with previously declared income and avoiding scrutiny or defective returns.