Taxability of tax saving bonds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2010 I have purchased tax saving bonds in 2007. It has matured now. Kindly let me know what will be the tax implication for the same?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 June 2010 Principal amount would be exempt and only interest will be taxed. Interest only taxable to the amount not taxed in earlier years.

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2010 Hi, I heard REC bonds are taxable on both the interest earned and maturity value.
Kindly let me know the correct taxability of 'capital gains tax saving bonds'.
Will they be considered as long-term capital gains upon maturity and taxed as per indexation benefit?