what is deep discount bond and will it calculate in capital gain?
CA Gaurav Jain (Charterted Accountant) (156 Points)
25 November 2008what is deep discount bond and will it calculate in capital gain?
Bindu Madhav
(Head - Finance & Accounts)
(151 Points)
Replied 09 December 2008
Deep Discount Bond is a bond that sold(issued) at a great discount. These are to be taxed as a Capital Gains on maturity. Though there is a confusion in between about the accrual of income on these bonds, now the matter is settled that these bonds income to be taxed at the end (maturity)
kumar vivek
(CA)
(190 Points)
Replied 15 December 2008
issued at lower price...maturity price is the face value...difference is cap gain
taxation is onthe basis of market price at theend of the year...difference b/w market price and opening price
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