Reg: taxability of interest on rec bond
This query is : Resolved
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.
(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.
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
14 March 2019
Thank You . Is there any provision stating the taxability of Interest on REC Bond?
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
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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