Holders of certain bonds are eligible to claim deduction from their taxable income. A list of such deposits is mentioned hereunder:
1. Interest on Government Securities, National Savings Certificate (issues VI, VII and VIII), Development Bonds, Development Bonds and 7 year National Rural Development Bonds
2. Interest on Post Office Term Deposits, Recurring Deposits Accounts and National Savings Schemes (as referred to in National Savings Scheme Rules, 1992)
3. Dividends received from a co-operative society
4. Income from investments in UTI (up to assessment year 1999-2000)
5. Interest on deposits with a banking company or a co-operative bank
6. Interest on deposits with a co-operative society made by a member of the society
7. Interest on deposits with housing boards
8. Interest from deposits made under A.E. (C, D.) Act & C.D.S. (I.T.P.) Act.
9. Interest on notified debentures of any co-operative society, any institution or any public sector company.
10. Interest on deposits with a financial corporation which is engaged in providing long-term finance for industrial development in India and which is entitled for deduction under Section 36(l)(viii) [up to assessment year 1999-2000, the corporation is approved by Central Government].
11. Interest on deposits with a public company formed and registered in India with the major object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is eligible for deduction under Section 36(l)(viii) [up to assessment year 1999-2000, the company is approved by the Central Government under Section 36(l)(viii)].
12. Interest on deposits with Industrial Development Bank of India.
13. Interest on deposits under National Deposit Scheme. Income in respect of units of mutual fund specified under Section 10(23D).
14. Interest on deposits under Post Office (Monthly Income Account) Rules
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