Capital gain

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2013 in case of investment under bonds of sec.54 EC of Income Tax under capital gains, what happens if the money is withdrawn after 3 years (lock in period)... then what is the tax liability....????

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)

11 April 2013 it will be taxed as long term capital gain..

but benefit of indexation is not available in that case as per third proviso to sec 48..

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2013 sir thank u ... can u tell me in detail proviso 3 of sec.48
plzz sir!!!

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)

12 April 2013 as per third proviso to sec 48 benefit of indexation is not available in case of bonds and debentures...

Message likes : 1 times

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

30 May 2013 Sorry expert you have gone in a different direction. The investment in bond is not traded in the open market or in stock exchange and hence no Capital Gain as you are receiving interest and the interest paid half yearly attract income from other sources on which no TDS is deducted. Therefore after lock in period the amount as received is not at all taxable. Hence the question of capital gain will not arise and again the question of indexation is not applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now