18 December 2014
I have allotted 100 NCDs of a company on 1st April 2012 at face value of Rs.1000/- making investment amount of rs 1,00,000/- Interest 11% compounded annually payable at maturity after five years having maturity value of Rs. 1,68,500/- . on 6 December 2014 i have sold these ncd in secondary market at Rs. 1400 per NCD getting Rs 1,40,000/-
Please tell me taxation for these NCD as i have sell them before maturity in market . Please note that i have shown accrued intrest upto 31 march 2014 in my previous returns totaling of 23,210
18 December 2014
Totally agreed sir difference will be shown at Captial gain . Just confirm me that will it not be Long term Captial Gain as i hold NCDs more than 12 month period ie period from 1 April 2012 to 6 December 2014
18 December 2014
Yes, it can fall under the definition of security u/s 2 h of Securities Contract Regulation Act The gain is LONG Term and not short Term. Thank you for the query.
CAclubindia
