Taxation on ncds
This query is : Resolved
18 December 2014
I have allotted 100 NCDs of a company on 1st April 2012 at face value of Rs.1000/- making investment amount of rs 1,00,000/- Interest 11% compounded annually payable at maturity after five years having maturity value of Rs. 1,68,500/- . on 6 December 2014 i have sold these ncd in secondary market at Rs. 1400 per NCD getting Rs 1,40,000/-
Please tell me taxation for these NCD as i have sell them before maturity in market . Please note that i have shown accrued intrest upto 31 march 2014 in my previous returns totaling of 23,210
Please tell me taxation for these NCD as i have sell them before maturity in market . Please note that i have shown accrued intrest upto 31 march 2014 in my previous returns totaling of 23,210
18 December 2014
Show the difference 140,000-123210 = 16790 as short term capital gain.
18 December 2014
Totally agreed sir difference will be shown at Captial gain . Just confirm me that will it not be Long term Captial Gain as i hold NCDs more than 12 month period ie period from 1 April 2012 to 6 December 2014
18 December 2014
Yes, it can fall under the definition of security u/s 2 h of Securities Contract Regulation Act
The gain is LONG Term and not short Term.
Thank you for the query.
The gain is LONG Term and not short Term.
Thank you for the query.
19 December 2014
Thanks for your Expert Advice . I will do as directed by you.
19 December 2014
Sure.
Thank you once again.
Thank you once again.
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