Taxliability

This query is : Resolved 

08 August 2011 Is there any taxliability on redemption of REC bonds eligible of 54EC?

In other words what is the tax liability on the date of redemption of bonds purchased for tax benefit under section 54EC?

08 August 2011 On redemption there is no tax liability
except interest accrued, which can be taken on yearly basis as income.

On pre-maturity withdrawal the Face value of Bond will be taxed as LTCG.

08 August 2011 sir,
what is basis could be to say that there is no tax liability.

I could not find any provision which support our view that there is no tax liability on redemption of bonds.

Please clarify


10 August 2011 ...because Bonds are redeemed at par that is at Cost=Sale price, hence no surplus, no gain.

10 August 2011 In case you have purchased Bonds at a discount rate and are not listed, capital gain may be calculated on taking the redemption value as sales consideration.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries