Zero coupon bond
This query is : Resolved
21 January 2016
taxability of zero coupon bond
21 January 2016
Income from such instruments is to be considered as capital gains. These bonds will be considered as short term capital asset if held for a period for not more than 12 months. Long term capital gains on such bonds will attract 10% tax if the taxpayer does not claim the benefit of indexation.
he provisions of section 112 have been amended so as to bring parity of such bonds with other securities. The infrastructure company or fund or public sector company, which issues such bonds will be allowed a deduction for the discount, if any, on prorata basis subject to rules to be prescribed in this regard. Section 194A has been amended so as to provide that no tax will be deducted at source in respect of income payable on zero coupon bonds.
he provisions of section 112 have been amended so as to bring parity of such bonds with other securities. The infrastructure company or fund or public sector company, which issues such bonds will be allowed a deduction for the discount, if any, on prorata basis subject to rules to be prescribed in this regard. Section 194A has been amended so as to provide that no tax will be deducted at source in respect of income payable on zero coupon bonds.
21 January 2016
Thank u so much...but if he does not claim indexation benefit...then it will continue to be taxable at 10% or not
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
- STCG....................................................
- Supply through E-commerce Operators
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
