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ARPIT RAMSISARIA (Articled Trainnee) (33 Points)

18 July 2012  

Can Someone help me to tell about taxability of bond In below example with Any write-up available:-

 

Suppose I had Purchased a bond ( F.V Rs.1000) for Rs. 1005 from Secondary Market,

In Addition I had Paid 15 Rs. for interst accrued.

 

Now , when I am selling the bond, I Sold it for Rs. 1030+ 30 Rs.for Interest accrued.

Now , what will be the tax treatment for increase in its price (ie.1030-1005=  25),  and increase in interest of Rs. 15(30-15).  Would both be liable to be taxable as Capital gain or Interest.?