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Reg: taxability of interest on rec bond

This query is : Resolved 
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(Querist)
11 March 2019 kindly clarify the taxability of interest on REC under 2 Situations-
(1) When REC Bond purchased under Section 54EC
(2) When REC Bond purchased for the purpose of Investment.
Kindly quote the section under which the interest is exempt.
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K Srinivas, CMA CS

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K Srinivas, CMA CS (Expert)
11 March 2019 Investment in REC bond is available as deduction under section 54EC, interest is never tax free. Therefore, irrespective of the investment is for availing benefits under 54EC or purely for investment purpose, interest will be taxable under income from other sources
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Deeptha Srinivasa Ragavan

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Deeptha Srinivasa Ragavan (Querist)
14 March 2019 Thank You . Is there any provision stating the taxability of Interest on REC Bond?
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K Srinivas, CMA CS

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K Srinivas, CMA CS (Expert)
15 March 2019 No provision as such. The investment is not tax free per se. Therefore, the interest from such investment is taxable under income from other sources
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
21 November 2021 Interest is not taxable, only if the bonds are tax-free bonds; and not if issued for deduction under sec. 54EC.
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