For debt oriented schemes capital gains is 20% with indexation. But bonds and debentures except zero coupon are not entitled for indexation. So what tax rate for bonds and debentures since no indexation?
For debt oriented schemes capital gains is 20% with indexation. But bonds and debentures except zero coupon are not entitled for indexation. So what tax rate for bonds and debentures since no indexation?
| Originally posted by : Saurabh Maheshwari | ||
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As per Sec 112(1)(iii)-Long term capital gains arising on transfer of unlisted debentures/bonds to be taxed at @ 10%. ST capital gain to be taxed @ 30% in case of unlisted bonds and deb. |
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well says saurabh
Long term capital gains on listed securities(securities include debentures) are taxed at the rate of 10% without indexation or 20% with indexation whichever is lower. However, as the benefit of cost indexation is not available in case of bonds and debentures; therefore, long term capital gains from the same are always taxable @ 10.30 per cent (including education cess of 3%) without indexation.
ST capital gain on listed debentures and bonds are taxed @ slab rate..
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