Is nhai/rec bonds maturity amount taxable?
Siddarth (Student) (60 Points)
11 October 2012
is the amount recieved on maturity of REC/ NHAI bonds taxable?
3 Replies
CA Manish
(Job)
(5264 Points)
Replied 11 October 2012
The NHAI bonds carry interest at 6.25 per cent per annum, payable annually on 31 March every year. REC bonds carry interest at 5.75 per cent per annum, payable annually on 30 June every year. The interest earned on these bonds is fully taxable under the head “Income from Other Sources”. No tax at source would be deducted from the interest on these bonds.
Siddarth
(Student)
(60 Points)
Replied 11 October 2012
Thank you sir but what about the maturity amount which would be received after 3yrs.?
CA C.JANANI
(partner)
(270 Points)
Replied 11 October 2012
Maturity amount is exempt since it has been invested for the purpose of saving tax . The idea of committing to such a low rate of interest is to make the proceeds tax free on investment and maturity.
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