1.How are T-BILLS taxed?
2.How to report it in ITR?
T-bills or Treasury Bills are short-term debt instruments issued by the Government of India. The taxation of T-bills depends on whether they are held till maturity or sold before maturity.
If T-bills are sold before maturity, they are treated as a form of interest income and taxed under the head "Income from Other Sources" in the ITR.
If T-bills are held till maturity, they are considered as capital assets and are taxed under the head "Income from Capital Gains" in the Income Tax Return (ITR).
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