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Taxation of icici money multiplier bond

Others 898 views 9 replies

I bought ICICI money multiplier bond in the secondary market in Oct 2020 and held till maturity (May 2023); Is the Gain to be considered as Capital Gains or Interest Income.

Replies (9)

Whether any TDS deducted over redemption? If yes, under which section?

yes.

under sec 193.

Declare it under interest income.

The form 16A issued by the bank on maturity indicates the full interest for the entire lifetime of the bond (Nov. 1998 to May 2023. 

But this entire interest is not my gain, since I bought the bond in the secondary market in Oct 2020, i.e. after 22 years.

That doesn't matter, you can take the differential amount as the interest  for ITR.

Sir,

With regards to your above reply, thank you very much. It is helpful.

I was also holder of ICICI MMB OP III bond (Nov 1999 - june 2023). 26AS shows amount u/s 193. 

So just to reconfirm,

1) should i take full income as interest income? and pay full tax as per slab rate 

or  2) can I show under 112(1) as LTCG? and pay 10% tax only?

Thank you in advance for your guidance.

Thank you

Parekh

 

 

 

1. Full interest at slab rate, if had not offered interest income annually.

Sir, thank you for your reply.

You are welcome.        


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