Interest on infrastructure bonds

Ankit (Professional) (82 Points)

04 July 2012  

Hi Everyone,

 

I had a query regarding Interest on Infra Bonds. There are two treatment that I have heard of regarding the same.

 

First is to charge Interest on Infra bonds under the head Income from othere sources .

Secondly, Since the interest is not piad yearly rather it is paid at the end of investment period. So the amount which will be received after the invesmtent period should be considered as Full Value of Conseideration and the amount iinvested will be treated as cost of a cquisition and it will be Indexed and according Capital Gain would be paid in that year.

 

Can everyone help me in this area as to which one of this more appropriate ?

 

Thanks,

Ankit