Deep Discount Bond

Tax queries 492 views 2 replies

Please explain me the details of Income from Deep Discount Bond and redemption in IT Act ?

Replies (2)

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

 

 

 

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details