Yes, TDS (Tax Deduction at Source) is applicable to the interest amount of IRFC-REC-PFC Capital Gain Bonds. As per the Income Tax Act, 1961, if the interest income exceeds a certain threshold, TDS is deducted by the issuer or payer at the specified rate before disbursing the interest payment to the bondholders.
The current TDS rate applicable to interest income from IRFC Capital Gain Bonds is 10%.
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