Tax Query

dear reena

interest on govt. securities is taxable however there will be no deduction of tax on govt. securities but if securities are notified by the central govt. then interest will also exempt.

Any Tax Free Securities Bonds or Securities either from GOVT. / PVT. or any other are TAX FREE but the case is Interest earned on those are TAXABLE no matter even if the principal amount is TAX FREE but the interest is TAXABLE unless and until it is mentioned there that INTEREST IS TAX FREE....!!!

For example for REC Bonds, interest earned is TAXABLE and principle is used to get tax exemption of INCOME FROM CAPITAL GAINS ........!!!

interest will be taxable

THANK U ALL FOR UR VALUABLE RESPONSE......

FOR CLAIMING EXEMPTION OF INTEREST, SECURITIES ON WHICH INTEREST IS RECEIVED MUST BE NOTIFIED BY THE CENTRAL GOVT. FOR THE PURPOSE OF SEC 10(15) OF THE INCOME TAX ACT.

REGARDS,

MANOJ