Taxation for cumulative bonds

Hi,

I would like to know if the interest income from bonds/NCDs with cumulative option (interest accrud but paid at maturity) is calc with indexation? I understand that regular interest payment from bond/NCD is added to "other income" and taxed per slab.

Thanks.

when interest accured is displayed on the face of bond, then "interest accured" should be presented yearly for taxation purpose, 

Originally posted by : U S Sharma
	when interest accured is displayed on the face of bond, then "interest accured" should be presented yearly for taxation purpose,

Thanks.

Can you please explain in detail?  My question is more towards does indexaton benefit apply to bonds which total interest at maturity?