Market Linked Debentures are bought back before maturity by the issue.
What is the tax liability on difference between the issue price and buy back price in the hands of investor?
Menu
Market Linked Debentures
Replies (1)
The difference between the buyback price and the issue price is considered as interest income for tax purposes As per Indian tax laws, interest income from debt instruments like debentrures is taxable as "Income from Other Sources" under the Income Tax Act, 1961.
So, the gain (difference between buyback price and issue price)would be taxable as interest income at the applicable tax slab rate for the investor.
Recent Topics :
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
Related Topics :
CAclubindia
