Income from other sources

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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2013 Whether Interest on tax free listed debentures are exempt or not?

Whether Interest on tax free non listed debentures are exempt or not?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 October 2013 I am not sure if you are referring to tax free bonds. If yes, then interest accrued is exempt under Section 10(15)(iv)(h).

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 Dear Sir, You mean to say there is any difference between tax free bonds and tax free debentures?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 October 2013 I could not find any example of tax free debentures. If you have, please do share and under which section they have been made tax free? According to me they should be same.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 Sir this is a graduation question in the past examination question.In this listed & non listed tax free debentures both interest taxable. But as per ur section i think it is also exempt.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 October 2013 see its simple. For any income to be tax free, there has to be a particular section under which it is declared tax free. Otherwise it is taxable. The interest on bonds covered by the aforementioned section are tax free irrespective of whether they are listed or not.

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