Pre-TDS / Post-TDS Toggle: See Your Real, In-Hand Bond Cashflow

The gap between what a bond pays and what you receive

When you invest in a bond, the coupon rate tells you what the bond pays. But it does not tell you what you will actually receive. In India, TDS (Tax Deducted at Source) applies to interest income on most bonds. This means a portion of every interest payout is deducted before it reaches your bank account.

For investors planning their cashflow, especially those relying on bond interest for regular income, the difference between the gross payout and the in-hand amount can be significant. A bond paying Rs. 10,000 in interest may only result in Rs. 9,000 or less actually hitting your account, depending on the applicable TDS rate.

Until now, the payout schedule on BondScanner showed gross figures. You had to calculate the post-TDS amount yourself. We have fixed that.

What's new: Pre-TDS / Post-TDS toggle

Every bond's payout schedule on BondScanner now has a Pre-TDS / Post-TDS toggle. Here is what you can do with it:

• Switch any bond's payout schedule between Pre-TDS and Post-TDS view with a single tap. See your gross payout or your estimated in-hand amount instantly

• See the estimated cashflow after TDS is deducted for each payout date, so you know exactly what to expect in your account

• Compare your payout before and after TDS at a glance, which is useful when evaluating whether a bond's net yield meets your income needs

How to use the toggle

Using the Pre-TDS / Post-TDS toggle on BondScanner is straightforward:

1. Open any bond's detail page on BondScanner

2. Navigate to the payout schedule section

3. Use the toggle at the top of the schedule to switch between Pre-TDS and Post-TDS view

4. The payout amounts update instantly. No calculations needed on your end

The toggle is available across all bonds on BondScanner, including both fixed and floating rate instruments.

Why this matters for your cashflow planning

Bonds are often chosen by investors who want predictable, regular income. But predictable income means predictable after-tax income, not just the stated coupon.

The Pre-TDS / Post-TDS toggle makes it easier to plan around your actual in-hand cashflow. If you are using bond interest to cover monthly expenses, meet an SIP obligation, or supplement another income source, you need to know the net number and not the gross. This feature gives you that directly on the payout schedule, without needing a spreadsheet or a tax calculator.

It is also useful when comparing bonds. Two bonds with the same coupon rate may have different effective post-TDS yields depending on their structure. Seeing post-TDS payouts side by side helps you make a more informed comparison.

What's on the workbench

Here is a look at what we are building next on BondScanner:

• Richer detail on the bonds you research: more information where it matters, so you can invest with greater confidence

• Easier ways to follow the bonds you are interested in: track specific bonds and get notified when things change

• More of the app experience, on web: features you rely on in the app are progressively coming to the web platform

Built with your feedback

"What do I get after TDS?" - Shekhar, BondScanner user

BondScanner evolves with every conversation we have with our users. This update is proof of that.