Government bonds are debt securities that provide a fixed income, with the issuer typically being a government. The majority of government bonds are issued in domestic currency and represent a significant source of funding for national governments. Government bond yields can vary depending on the type of bond, country, and creditworthiness of the issuer. The Indian government offers various types of bonds to suit different needs. Promissory notes are one type of Indian Government Bonds, which pay interest semi-annually at the rate set by the Central Government. The Government reserves the right to suspend or postpone payment at times such as war or natural calamities. These bonds are issued in multiples of Rs 1,000 and come in two denominations: 10-year maturity and 5-year maturity. There is no option for redemption before maturity; nor is there any penalization for non-redemption after maturity. Interest on these bonds is taxable under head- Income from other sources – but only if taxable income exceeds Rs 50 lakh per annum (or any higher limit as notified).