Can Someone help me to tell about taxability of bond In below example with Any write-up available:-
Suppose I had Purchased a bond ( F.V Rs.1000) for Rs. 1005 from Secondary Market,
In Addition I had Paid 15 Rs. for interst accrued.
Now , when I am selling the bond, I Sold it for Rs. 1030+ 30 Rs.for Interest accrued.
Now , what will be the tax treatment for increase in its price (ie.1030-1005= 25), and increase in interest of Rs. 15(30-15). Would both be liable to be taxable as Capital gain or Interest.?
CAclubindia
