Interest on infrastructure bonds

 hi dear ,

Taxability of interest on Bonds would depend upon the method of accounting adopted by the resident Bondholder as mentioned in the provisions of the IT Act. U/S 145 relates to method of accounting followed by assessee for taxability of income. This can be applied for Heads "PGBP" and "Income from other sources". you can show the interest on Accrual basis/receipt basis (ie on maturity) but the method followed should be consistent. Interest earned on these infrastructure bonds is chargeable to tax at normal tax rates. Interest can not be considered for capital gain.

Thanks budy :)

Hi All

What about Taxability of Infra bonds if we are selling after maturity in market and getting Capital gain.

how will we calculate capital gain in this case and what will b rate.

SAME AS LONG TERM CAPITAL ASSETS

AGREE WITH MR PARIHAR GOPAL

But how to calculate LTCG. as maturity value of bonds include interest component also.

Hi,

Pl Exculde the Interest Componets for Claculating LTCg, Interest componet is taxbble under -other source income

Hello,

How should one look at the taxability of the buy back option for IDFC infrastructure bonds Tranche1 issued in Dec. 2011?

I had invested Rs. 20,000/- and opted for cumulative buy back option. It got exercised after 5 years lock in in Dec. 2016 and I received a sum of Rs. 30,780/-

Que: Should I include Rs. 10,780 (interest income?) as income from other sources to be taxed as per my slab? OR it has to be considered as long term capital gains and taxed as per debt LTCG (20% with indexation)?