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Ncd interest & tax

Tax planning 556 views 1 replies

 

NCD wth coupon 9.62% half-yearly payment is available at YTM (Yield to Maturity) 10.34%.  FV= 1000Rs Current trading price = 1034.67Rs  As per IT rules, TDS will be deducted above interest payment of 5000/yr.

To avoid TDS complications, what should be my investment amount in the NCD? I plan to hold the NCD till maturity.

 

Thanks in advance.

 

Replies (1)

To my knowledge, tax is not deducted for NCDs if they are in demat form and listed in a stock exchange.


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