Taxability of sbi listed bonds

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Girish (Querist)
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24 August 2011 Last year sbi has issued unsecured bonds . SBI is paying simple interest @ 9.75 of whole year on 31-3 .These bonds are also traded on BSE/ NSE . Interest received on 31-3 is taxable as income from other sources ? gain/loss on sale of bond on nse is taxable as long term/ short term ? if long term ( after 12M)benefit of indexation is available or not. In nutsell interest received on 31-3-11 for first year is taxable as income from other sources or not and if the same is sold on 01-08-11 for 10400 ( cost of purchase 10000), Rs. 400 is taxable as interest or long term gain . If as long term gain , indexation is available ?

code of nse : SBIBD1

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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24 August 2011 if investment having more 12 m period than it is eligible for indexation.
interest taxable in other source and gain taxable under long term gain.