Deep Discount Bond

Sunali is correct.

i agree with your comments but if issuer treated as interest income before or after maturity what soever how it will be treated as capital gain???

Hi Devang..the matter as explained by IT Department is that if the bonds are sold before maturity, the difference between the sale vale and purcahse price will be the capital gain, however if the holder get the same redeemed from the company, no capital gain will arise and the interest i.e. the difference between purchase price and redemption price will be taxable under the head income from other sources.

I hope its clear now..

thanks...it will clear now....