How are T-Bill taxed?
Samantha J (1236 Points)
21 October 2022Samantha J (1236 Points)
21 October 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 22 October 2022
All below 3 yrs tenure are treated as STCG.
sabyasachi mukherjee
(27330 Points)
Replied 22 October 2022
Transfer of capital asset is taxsble. T BILLS ARE Short tetm US GOVERNMENT DEBT OBLIGATION BACKED BY TREASURY DEPARTMENT .
Samantha J
(1236 Points)
Replied 23 October 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 23 October 2022
Treasury bills can be issued in a physical form as a promissory note or dematerialized form by crediting to SGL account (Subsidiary General Ledger Account).
Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity. For example, a 91 day Treasury bill of ₹100/- (face value) may be issued at say ₹ 98.20, that is, at a discount of say, ₹1.80 and would be redeemed at the face value of ₹100/-. The return to the investors is the difference between the maturity value or the face value (that is ₹100) and the issue price (for calculation of yield on Treasury Bills
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 23 October 2022
The Public Debt Office (PDO) of RBI, acts as the registry and central depository for G-Secs. They may be held by investors either as physical stock or in dematerialized (demat/electronic) form. From May 20, 2002, it is mandatory for all the RBI regulated entities to hold and transact in G-Secs only in dematerialized (SGL) form.
SGL Account: Reserve Bank of India offers SGL Account facility to select entities who can hold their securities in SGL accounts maintained with the Public Debt Offices of the RBI. Only financially strong entities viz. Banks, PDs, select UCBs and NBFCs which meet RBI guidelines are allowed to maintain SGL with RBI.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 23 October 2022
An investor who purchases a T bill can expect to receive a return from one or more of the following sources:
The coupon interest payments made by the issuer; Which is nil in this case
Any capital gain (or capital loss) when the bond is sold/matured.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(171414 Points)
Replied 23 October 2022
An investor who purchases a T bill can expect to receive a return from one or more of the following sources:
Any capital gain (or capital loss) when the bond is sold/matured.
Samantha J
(1236 Points)
Replied 23 October 2022
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