Principal amount would be exempt and only interest will be taxed. Interest only taxable to the amount not taxed in earlier years.
Author : Anonymous
( Author ) 30 June 2010
Hi, I heard REC bonds are taxable on both the interest earned and maturity value. Kindly let me know the correct taxability of 'capital gains tax saving bonds'. Will they be considered as long-term capital gains upon maturity and taxed as per indexation benefit?