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Capital gains query

rima (ca) (142 Points)

18 March 2015

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?

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4 Replies

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 18 March 2015

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.

gaurav goyal (CA & CS) (86 Points)
Replied 18 March 2015

Originally posted by : Saurabh Maheshwari
	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.

well says saurabh

rima (ca) (142 Points)
Replied 18 March 2015

Thanks. But what if it is a listed bond or debenture?

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 18 March 2015

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..