17 January 2014
pl clarify if tax free bonds are sold before maturity then interest received on it still exempt under section 10(15)(iv)(h) of the Income Tax Act. thank you.
18 January 2014
in addition, please note that any capital gains on the sale of the transaction shall be taxable as under:
any capital gain from sale in the secondary market is taxable. Short-term capital gains from sale of tax-free bonds on exchanges are taxed at the normal rate, while long-term capital gains are taxed at 10% without indexation and 20% with indexation, whichever is lower.
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