Hi,
The question is on the taxation aspect of NCDs. I know that interest income from NCD is treated as income and will be clubeed to the individual total income and the appreciation/depreciation on the value of the NCD (if it is traded in the stock market) if accured will be treated as capital gain from debt instruments and follow the same rule.
I have a question, if i subscribe/buy a 5 year 9% annual NCD(cumulative option), where it pays no interest, but sell after say 4.5 years, then how do i show the gain in my income tax returns. Should i show as Capital Gain or should i split between interest and capital gain?
CAclubindia
