Please explain me the details of Income from Deep Discount Bond and redemption in IT Act ?
2 Replies
Puneet Mittal
(Sr. Officer Accounts)
(210 Points)
Replied 23 February 2010
Dear Mr. Ameet,
As per circular no02/2002 Income on Deep Discount Bond will be generate in every year. In the year of Purchase Interest income will be arise-
INTREST INCOME= M.P at the end of Ist year – Purchase Price
In Second Year & then after
INTREST INCOME= M.P at the end of IInd year – M.P at the end of Ist year
At the time of sell (before maturity) short term cap gain will arise.
At the time of Redemption Interest income will arise.
TDs will be deducted at the time of Maturity.
But who have invest less than 1 lacs they can declare his income at the time of sell or redemption.
At the time of sell cap gain will arise and at the time of maturity intrest income.
Regards
Puneet Mittal
Ameet
(L)
(1678 Points)
Replied 23 February 2010
Dear Puneet, Thanks for reply. In few Months before there is also CBDT Circluar. If u get that, then pls forward to me. My Email Id is amitsunil250 @ rediffmail.com.
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