Tax on interest received from listed bonds

Kindly let me know the tax treatment for the interest received from listed taxable corporate bonds.

Face Value of Bond:    1000
Coupon Rate:               8 % per year payable on 31 March every year
Bonds bought:              200 bonds bought from stock exchange on 1 March 2020 at a rate of 1070 per Bond
Interest received:         Rs. 16000/- on 31 March 2020

Question: Tax to be paid on actual total interest received of Rs. 16000/- or tax to be paid on interest for one month from 1st of March till 31 March 2020

Thanks 

Replies (1)

Since it was acquired as cum interest bond, adjust the interest received into cost of acquisition of the bond(1070 less 80*11/12)in the ratio of 11:1(80*1/12) and show 1 month interest as income for the year 2019-20.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details