tax on redemption amount / interest
This query is : Resolved
12 June 2010
dear sir
my friend has bought ICICI Bank Bond on Jan., 2005, Tax saving bond (Option II).
During March 2010 he received the Redemption amount Rs.20,000 with interest Rs.6120 ( after deducting TDS Rs.680), hence the total amount was Rs.26120.
Is Income tax calculated on Rs.26120 or on interest Rs.6800, by taking this as Income from other sources.
thanks
Nagarajan
my friend has bought ICICI Bank Bond on Jan., 2005, Tax saving bond (Option II).
During March 2010 he received the Redemption amount Rs.20,000 with interest Rs.6120 ( after deducting TDS Rs.680), hence the total amount was Rs.26120.
Is Income tax calculated on Rs.26120 or on interest Rs.6800, by taking this as Income from other sources.
thanks
Nagarajan
Aditya Maheshwari
(Expert)
12 June 2010
tax payable only on Gross interest portion not on principal.
Aditya Maheshwari
(Expert)
14 June 2010
You are welcome
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