Taxation on redemption premium paid on bonds
This query is : Resolved
21 April 2012
Q 1-what all tax treatments are available to investors in case they invest in a bond/NCD which pays redemption premium at maturity.
CA PARAS BAFNA
(Expert)
21 April 2012
If the investor has the knowledge of redemption premium in advance, he may declare proportionate higher interest income in the respective year and can show it as receivable.
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In other cases, at the time of maturity , the excess received will be treated as interest income.
.
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In other cases, at the time of maturity , the excess received will be treated as interest income.
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