Please help me out on bond washing transaction

Tax queries 581 views 2 replies

Hello

Can anyone please let me know that what excalty the Bond Washing Transaction is?

Meaning of the same i know but i need to know practically with eg.

 

Thanks 

 

Replies (2)
Dhruvi, Bonds are fixed income instruments and in this type of transaaction, the bonds are sold off just before the due date for the payment of the interest. they are usually sold to a close friend or a relative and then they are re-acquired once the interest is paid. this is done so that, the buyer (relative) gets the interest and the tax is levied on him. the buyer is usually a low tax slab person. - Ankit

Hello Ankit

Thanks Your explanation make my doubt clear

 


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