Zero coupon bond
This query is : Resolved
29 August 2019
Dear Sir,
we invested some amount in religare 6 years back which has now given 2 times of amount invested. It did not have any interest coupon. my ques. is - should we treat it as interest income or capital gain.
as per sec 2(48) zero coupon bond notified by central govt. only is subject to capital gain. religare has not be notified so. however as per circular 2/2002 issued by cbdt redemption and subscription diff. should be treated as interest income applicable to deep discount bond which i think is also applicable to zero coupon bond. the circular was meant to remove confusion.
kindly guide regarding tax treatment.
we invested some amount in religare 6 years back which has now given 2 times of amount invested. It did not have any interest coupon. my ques. is - should we treat it as interest income or capital gain.
as per sec 2(48) zero coupon bond notified by central govt. only is subject to capital gain. religare has not be notified so. however as per circular 2/2002 issued by cbdt redemption and subscription diff. should be treated as interest income applicable to deep discount bond which i think is also applicable to zero coupon bond. the circular was meant to remove confusion.
kindly guide regarding tax treatment.
29 August 2019
can you please give the NAME of that security...... is it BOND or UNITS?
30 August 2019
then it is interest and not capital gain.
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
- TDS 194-T applicability
- Fixe term employment
- GST ITC REVERSE
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Regarding Applicability of Tax Audit u/s 44AB
- Consolidated financials
- Tds on commission charges
- TDS on TRUST
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
