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Tax free bond

pranav (0) (41 Points)

17 May 2014

sir,

i have invetsed in tax free bonds and have clained set off of income from such bonds against my cost of invetsment. is the treatment correct?

please help.....

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9 Replies

Hitesh (Chartered accountant) (382 Points)
Replied 17 May 2014

Tax free bonds are any way exempted...so ur treatment here dont seem correct.......

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 17 May 2014

i dont understand the reason for doing so. any income from tax free bonds are already exempt then why would you do such treatment.

pranav (0) (41 Points)
Replied 17 May 2014

I am sorry, the income i am in receipt of is not interest but its an commission! There TDS also been deducted on that commission! And nw i have claimed set off against the investmen! Is is correct or not! If so kindly provide me reference for the same! Thank u

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 17 May 2014

ur query is not clear

pranav (0) (41 Points)
Replied 17 May 2014

I have invested in REC and such other TAX FREE BONDs. I am in receipt of commission on that! It is not an INTEREST. Now i have claimed set off of commission against these investment in TFBs. Is it permitted under IT Provisions??