07 May 2009
A financial institution issued deep discount bonds in 1996 which have a face value of Rs.2, 00,000 and a maturity period of 25 years. The bond was issued at Rs.5300. What is the value of this zero coupon bond?
07 May 2009
http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dtccontents/Para0221ANew.htm
07 May 2009
tks for reply but i have asked the formulae for calulating the value of deep discount bond and not abt its taxability so plz tell me regarding this
07 May 2009
tks for reply but i have asked the formulae for calulating the value of deep discount bond and not abt its taxability so plz tell me regarding this
07 May 2009
I repeat read clause 4 which is reproduced below.
Every person holding a Deep Discount Bond will make a market valuation of the bond as on the 31st March of each Financial Year (hereafter referred to as the valuation date) and mark such bond to such market value in accordance with the guidelines issued by the Reserve Bank of India for valuation of investments. For this purpose, market values of different instruments declared by the Reserve Bank of India or by the Primary Dealers Association of India jointly with the Fixed Income Money Market and Derivatives Association of India may be referred to.
CAclubindia
