Capital gains on Bonds
This query is : Resolved
04 April 2022
Hello,
If I buy a bond at a premium - 1100 (50- premium, 50- Accrued interest, FV-1000)
@15% coupon rate
At extinguishment/ maturity I get 1000 back with 150 Rs interest
Do I report 50 rs (1050-1000)as capital loss and 100Rs as interest income(150 received -50 accrued when I purchased)
OR
Do I report 100 Rs (1100-1000) as capital loss and 150 Rs as Interest income.
Thanks
If I buy a bond at a premium - 1100 (50- premium, 50- Accrued interest, FV-1000)
@15% coupon rate
At extinguishment/ maturity I get 1000 back with 150 Rs interest
Do I report 50 rs (1050-1000)as capital loss and 100Rs as interest income(150 received -50 accrued when I purchased)
OR
Do I report 100 Rs (1100-1000) as capital loss and 150 Rs as Interest income.
Thanks
12 April 2022
First option is correct.
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