Taxation of "Market Linked Debentures"

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Is the Interest on short-term maket-linked debentures, held in my D-mat account, considered Capital Gain or Income under "Other Source", for taxation purposes ??
Thanks.
Replies (2)
It will be taxed as Capital gain, if sold after a year short term @ 10% if sold in more than 3 years long term gain for taxation @ 20%
Thanks.
Also, Does it Mean, this CG can be set off against CG losses from previous years ??

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