Dear All;
My question is related to when tax to be paid on accrued interest (but not received) on IFCI bonds. Details are as follows:
1. I have purchased IFCI Bonds with an option of cumulative interest (which gets compounded annually).
2. I have not received any interest this FY. Also, I have not sold these bonds.
3. However, I have received a letter from IFCI, which says that "XX" amount of interest has been accrued.
Therefore my questions are:
1. Do I need to consider this as an Income for FY 2018-19 and pay tax this year? or
2. Can I defer payment of tax until the bonds are sold and pay long term capital gain (which gives me indexation benefit, and lower tax burden)?
Please guide. Thanks.
S. Kumar
CAclubindia
