Ltcg on tata debentures

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2013 i have RS 1lac tata debentures cumulative option ,fv =1000

and i hv been accruing interest and it stands at my BS as on 31 march 2013 at 1533 per debenture

its maturity value =1700 as on maturity date 5th march 2014

and today market value =1672

pls tell me
1)if i sell it today in secondary market .....LTCG=1672-1000 or
LTCG =1672-1533

2)or i shud accrue interest till today(9month after 31 march 2013)
and then calculate LTCG

thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 December 2013 since you are following accrual, you need to accrue 9 months of interest and then calculate LTCG. on a separate note, I hope you did pay tax on this accrued interest in your annual tax returns.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 December 2013 yes int needs to be shown as income from other sourcc3e.

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 actually...last 4 years - in my annual returns i hv been including accrued interest under head "income from other sources"and then calculated my tax liability and paid the same

so pls confirm in fy 13-14-tax treatment will be

1)LTCG will be =1672-(fv+interest accrued till date )

2)income from other sources will be .
..........interest acrrued for 9 months from 1st apr 2013

thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 December 2013 1. Yes LTCG would as computed by you.

2. Yes the interest for nine months shall be included in income from other sources.

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