I bought ICICI money multiplier bond in the secondary market in Oct 2020 and held till maturity (May 2023); Is the Gain to be considered as Capital Gains or Interest Income.
9 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 24 June 2024
Whether any TDS deducted over redemption? If yes, under which section?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 24 June 2024
Declare it under interest income.
Devaraj J
(10 Points)
Replied 24 June 2024
The form 16A issued by the bank on maturity indicates the full interest for the entire lifetime of the bond (Nov. 1998 to May 2023.
But this entire interest is not my gain, since I bought the bond in the secondary market in Oct 2020, i.e. after 22 years.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 24 June 2024
That doesn't matter, you can take the differential amount as the interest for ITR.
Parekh
(Proprietor)
(44 Points)
Replied 04 July 2024
Sir,
With regards to your above reply, thank you very much. It is helpful.
I was also holder of ICICI MMB OP III bond (Nov 1999 - june 2023). 26AS shows amount u/s 193.
So just to reconfirm,
1) should i take full income as interest income? and pay full tax as per slab rate
or 2) can I show under 112(1) as LTCG? and pay 10% tax only?
Thank you in advance for your guidance.
Thank you
Parekh
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 04 July 2024
1. Full interest at slab rate, if had not offered interest income annually.
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