Hello,
Is interest on REC Bonds received is exempt u/s 10 (15) and if yes whether there is any restriction on amount of interest.
8 Replies
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 June 2013
| Originally posted by : Divya Shah | ||
 |
INTEREST ON REC BONDS IS TAXABLE. |
 |
Amber Jain
(Article Assistant)
(206 Points)
Replied 21 June 2013
But in the section it's mentioned that interest on capital bonds is exempt and REC is covered in capital bonds
CA. Ritu Agarwal
(CEO)
(52 Points)
Replied 21 June 2013
Yes, you are right.
Taxation:
Tax Free: The Bonds are tax free in nature (exempt u/s 10(15)(iv)(h) of the Income Tax Act, 1961 and the interest on the Bonds will not
form part of the total income.
TDS: Since the interest Income on these bonds is exempt, no Tax Deduction at Source is required
"The entire interest received will be exempted, no restriction on the amount of interest."
shaik
(article student)
(32 Points)
Replied 14 August 2015
The interest earned on the REC bonds is fully taxable under the head “Income from Other Sources”. No tax at source would be deducted from the interest on these bonds.
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