Taxability of zero coupon bonds in india
The modified tax treatment now specified in fact corrects the anomalies in the existing system by providing a mechanism for taxing income accruing from year to year on deep discount bonds, on the same lines as income from normal coupon bearing bonds is4. 2 In a case where the bond is acquired during the year by an intermediate purchaser (a person who has acquired the bond by purchase during the term of the bond and not as original subscription) the difference between the market value as on the valuation date and the cost for which he acquired the bond, will be taxed as interest income or taxability of zero coupon bonds in india
Risks involved with investing in Zero Coupon Bonds Zero coupon bonds are subject to interest rates risk if sold prior to the date of maturity. The value of this bond is inversely related to the rise in the interest rates; with rising in interest rates there is a decline in the value of these bonds in the secondary market.
NABARD Zero Coupon Bonds are available for subscription right now NABARD Zero Coupon Bond Issue Details. by Manshu on July 17, 2012. in Fixed Deposits. Tax liability of investor on transfer of zero coupon bonds may be either short term or long depending upon the holding period, i. e. for note more than 12 months or otherwise. Proviso to S. 112(1) of Income Tax clarifies the process of calculating tax on long term capital gains arising from transfer of zero coupon bonds.taxability of zero coupon bonds in india Taxability of Zero Coupon Bonds Taxability On Maturity As per section 2(47) the maturity of zero coupon bonds shall be regarded as transfer
What is zero coupon bond in India? How do I buy and sell bonds in India? The best time to purchase zero coupon bonds is when the interest rates are high. taxability of zero coupon bonds in india Find out how each of these bonds are taxed and what you Taxation Rules for Bond Investors zerocoupon investors must report a prorated portion of Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond. Section 2(48) of the Incometax Act, 1961 Zero coupon bond Specified bond Ministry of Finance, Government of India. Visitor counter: 1 1 8 7 1 5 9 4Rating: 4.57 / Views: 522