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Taxability of Interest income NHAI bond

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Amaresh Mondal

72 Points Posted on 31 August 2022

I have two question
1) taxability of interest income on NHAI bond claim exemption u/s 54EC against LTCG on transfer of immovable property (i.e. Land) ?
2) Taxability of interest income on NHAI Tax free bond?

Replies (4)

Quick Summary

This discussion clarifies the tax treatment of interest earned on NHAI bonds. While interest income from 'Tax Free Bonds' is generally exempt under Section 10(15) of the Income Tax Act, interest from other NHAI bonds is taxable, similar to Fixed Deposit interest. The principal amount on maturity is tax-free, but interest received is always taxable. Both types of bonds were discontinued from April 1st, 2022.

Mahesh Shah

2478 Points Posted on 31 August 2022

Int will be recived without TDS in your bank AC on dates as declared in applications form.Same intrest will be taxable as good as FD int is taxable
On maturity principal amt is Tax free ( int part always taxable as and when RCD)