kallu (Software Engineer) (113 Points)
21 July 2013I believe that Interest from tax free bonds interest should be reported as exempt income in schedule EI of Indian income tax return.
1) Does anyone know if it should be declared as interest income or dividend income?
2) Do these incomes raise the tax bracket of the taxpayer?
Thank you for your time.
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 21 July 2013
1) Does anyone know if it should be declared as interest income or dividend income?
Bonds are interest bearing - hence it should be filled in interest income head.
2) Do these incomes raise the tax bracket of the taxpayer?
No this does not effect the tax bracket of a tax payer.
However the Income Tax Department has introduced section 14A for disllownace of expenses in relation to earning exempt income. - Just for your information. If applicable.
CAclubindia
