How does taxation work for T-Bills, SDLs and Government bonds?

Government bonds and SDLs: Interest credited to the bank account is considered income from other sources and taxes have to be paid as per income tax slab. The long-term capital gains tax on the appreciation of bond prices has been increased from 10% to 12.5%. Short term capital gains (STCG) are as per the applicable slab rate. Interest payments received on Government bonds exceeding ₹10,000 are subject to tax deducted at source (TDS) @ 10%.

T-bills: T-bills are bought at a discount and sold at par. The appreciation is considered as STCG and taxed as per the applicable slab rate.