regarding itr 2

a pentioner got his redeemed value of zero coupon bond where tds is deducted by the co. but while filling the excel sheet of itr 2, in the total income and total tax liab sheet, tax column is not getting auto filled neither it is taking values.. total income is appearing in deemed income under 115 JC.. but its related sheet does not show any tax liab coz it is not taxable there.. how do i fill tax liab amount column..???
Replies (4)

TDS is not applicable on income or maturity/ redemption proceeds of zero coupon bonds, in view of specific provisions of S.194A(3)(x). As such as per Section 194A,  no TDS is deducted on income payable on zero coupon bonds.

 

Maturity, redemption or otherwise transfer of zero coupon bonds is treated as transfer in the hands of investor for the purpose of capital gains tax under S.2(47)(iva). Income arising from zero coupon bonds as defined in S.(48)(2) is taxed only in the year in which same is transferred or redeemed or matured.

Tax liability of investor on transfer of zero coupon bonds may be either short term or long depending upon the holding period, i.e. for not more than 12 months or otherwise.

Proviso to S.112(1) of Income Tax clarifies the process of calculating tax on long term capital gains arising from transfer of notified zero coupon bonds. In such cases  the tax payable in respect of long-term capital gain arising from transfer of a zero coupon bonds exceeds ten per cent, of the amount of capital gains without indexing 

sir, the concerned co. has deducted tds on non tax exempt deep discount bonds while making payment on maturity/ redemption @ 10%.. and period of holding is exceeding 12 months..

So, declare the differential amount under LTCG at 10% rate, without indexation.

Thank you sir..

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