vinod (engineer) (23 Points)
20 December 2019Hi,
Let's say somebody buys 91-day T-bills from RBI and holds it till maturity. Under what category do gains on T-Bills be reported in ITR ?. Does it need to be declared as interest income or as Short Term Capital Gains from debt?. If declared under STCG , can these gains be setoff against other Short Term capital Loss on Debut.
Thanks,
Vinod
Kapadia Pravin
(17249 Points)
Replied 22 December 2019
vinod
(engineer)
(23 Points)
Replied 24 December 2019
Thanks Kapadia for the reply. Just for clarification. There is no separate interest payment. The T-bills are of face value 100 and allocated at 98. On maturity RBI pays back 100. Will the difference between the allotment price and maturity price be considered as Interest ?
I just googled and I find various websites mentioning that there won't be TDS done on interest from GSECS and T-Bills but the amount is taxable. Saves hassle of claiming refund if total income is non taxable.
Thanks,
Vinod
JulJameson
(dsfsfff)
(23 Points)
Replied 24 December 2019
why can't I change the company name ? such here is I have the second Poros if can be ( and the not very clear )
Samantha J
(1236 Points)
Replied 27 August 2023
1.T-bills are not issued in scrip form.They are Dr/Cr in RBI SGLedger.This means CG provisions don't arise.
2.They pay no coupons/interest.So can't show interest income.
3.Strictly speaking , T-Bills are Auctioned and not issued at a"discount".
Weighted average market determined"auction price" is what they're issued at.
4.They are issued as a "promissory note" form in physical form and just as Dr/Cr entry in demat form.
5.If held till maturity, there's no Income Tax!
6. it's a close substitute for money , hence can't be treated as "Income".
I challenge all CA / ICWA/ CS to prove otherwise, by quoting relevant sections of Income Tax.
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