Tax free bonds
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 December 2013
Once a retail investor sells or transfers Tax Free-bonds which have been originally allotted at issue, interest rate will fall marginally—i.e. the buyer will earn 50 bps (basis points) less. Thus, the higher rate of interest, applicable to retail investors, would not be available in case the bonds are transferred, except in case of transfer to legal heir in event of death of the original investor ,So if some one purchase from secondary market coupon rate is reduced by 50 BPS?
12 December 2013
As I understand, that depends upon the prescribed terms of issue.
.
Logically, if the terms of issue prescribes for reduction of rate of interest on transfer of the bonds by the original holder, then rate may be reduced as the bonds comes to another person.
.
The litreture of the issue must be read which can be found easily on the net
.
.
Logically, if the terms of issue prescribes for reduction of rate of interest on transfer of the bonds by the original holder, then rate may be reduced as the bonds comes to another person.
.
The litreture of the issue must be read which can be found easily on the net
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
