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Capital gain computation on transfer of Bonds

Tax queries 664 views 2 replies

I have some confusion on the holding period for calculating ST/LT capital Gains for Bonds. I understand that Long term gains are taxed @ 10% or 20% after indexation for all types of bonds.

What is the holding period for a Bond transfer to be considered as long term? Is it 3 years or 1 year?

Does the holding period for consideration of LT gains depend on the type of Bond? ie:

  1. Zero Coupon Bond
  2. Capital Indexed Bond
  3. Bonds that are listed
  4. All other types of bonds not listed above
Replies (2)

For Bonds the Holding period will be 12 Months.

 

Regards

Ram.

Here is some more info. https://www.indiataxes.com/Information/incometax/contents/capitalgains/cap_long_term.htm

But I am not convinsed the holding period is 12 months for all types of bonds (I may be wrong). Anybody got any pointers or reference to the IT sec that lays out the rule for bonds/debentures? 


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