Long term infra bond
This query is : Resolved
09 January 2012
Hi,
If I invest Rs 20,000/- in long term infra bond for 15 years(Annual Compounding),
1) Do I need to pay income tax on the earned interest at the end of 15 years?
2) Or do I need to pay income tax every year on the notional acquired interest amount(by declaring it under "income from other heads")? The interest amount which I have not yet received.
If I invest Rs 20,000/- in long term infra bond for 15 years(Annual Compounding),
1) Do I need to pay income tax on the earned interest at the end of 15 years?
2) Or do I need to pay income tax every year on the notional acquired interest amount(by declaring it under "income from other heads")? The interest amount which I have not yet received.
09 January 2012
The investment of Rs. 20000 in L&T infrastructure bond exempted under section 80CCF of present income tax rule. But the interest received from the bond is taxable under the head “Income from other sources” in the previous year in which it is received.
09 January 2012
So that means ...
I have to declare the interest received from the bond in 14th year, while filing my IT return? And not every year from the start of purchasing the bond.
Is this the same even for normal Bank FD also? If I invest in a Bank FD for 10 years(Annual Compounding) then the interest that I receive on FD should be declared under the head "Income from other sources" in the previous year in which it is received?
I have to declare the interest received from the bond in 14th year, while filing my IT return? And not every year from the start of purchasing the bond.
Is this the same even for normal Bank FD also? If I invest in a Bank FD for 10 years(Annual Compounding) then the interest that I receive on FD should be declared under the head "Income from other sources" in the previous year in which it is received?
09 January 2012
No some bonds give annual payout options also. But yes the income will be taxable in the year of receipt.
But in case of FD since TDS is deducted from you you will have to declare such interest as your income to claim TDS deducted in respect of he interest income.
But in case of FD since TDS is deducted from you you will have to declare such interest as your income to claim TDS deducted in respect of he interest income.
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