29 August 2019
Dear Sir, we invested some amount in religare 6 years back which has now given 2 times of amount invested. It did not have any interest coupon. my ques. is - should we treat it as interest income or capital gain.
as per sec 2(48) zero coupon bond notified by central govt. only is subject to capital gain. religare has not be notified so. however as per circular 2/2002 issued by cbdt redemption and subscription diff. should be treated as interest income applicable to deep discount bond which i think is also applicable to zero coupon bond. the circular was meant to remove confusion.
CAclubindia
