Income from capital gains
This query is : Resolved
04 January 2012
sir,
can anyone tell me as to why indexation is not allowed on debentures and bonds?
can anyone tell me as to why indexation is not allowed on debentures and bonds?
06 January 2012
Dear Pratik,
I would like to answer your query in two parts:
1. Indexation is allowed on debentures and bonds. Suppose you buy a bond for Rs. 100 and sell it after 3 years for Rs. 115, you can use indexation for calculating the capital gains.
2. What you are referring to, is the interest income you earn on bonds and debentures. This income is clubbed with your normal income and thus u cannot use indexation on the same.
I would like to answer your query in two parts:
1. Indexation is allowed on debentures and bonds. Suppose you buy a bond for Rs. 100 and sell it after 3 years for Rs. 115, you can use indexation for calculating the capital gains.
2. What you are referring to, is the interest income you earn on bonds and debentures. This income is clubbed with your normal income and thus u cannot use indexation on the same.
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