Query on Int.Accrued on cumulative NCD listed on Stock Excha

This query is : Resolved

pankaj ajmera (Querist)
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14 January 2010 I have purchased NCD ( Non-Convertible Deb.) of Tata Capital on 06.03.2009 on
following terms .
1 ) Face value –Rs.1000
2 ) Int.payment-cumulative
3 ) Coupon ( % ) –12% to be compounded annually on 31st March every year
4 ) Tenor – 60 months.

The question that arises are as follows.
1 ) Am I require to pay tax on int. accrued up to 31st March every year.
2 ) If I treat this as capital asset & i sell it on stock exchange after one year
whether I need to pay only capital gain tax ?
Experts please advise :

Pankaj Ajmera

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 January 2010 Interest to be accured every 31st March.

If sale meets the defination of security as mention in section 10(38) and STT paid on sale then the same should not be liable for long term capital gains tax

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