How is the profit on my bond sale taxed?
- The tax treatment of interest remains consistent regardless of whether the securities are listed on the stock market
Three months ago, I bought IFCI bonds, issued on 1 August 2011, for ₹34,000. The date of maturity of these bonds, with a face value of ₹10,000, is 1 August 2026. On maturity, IFCI will pay ₹10,000 as capital and ₹36,250 as interest, subject to tax deducted at source, or TDS. Can I show this amount received ( ₹46,250 less TDS) as sale proceeds in my income tax returns and claim long term profit? Note that there was no TDS till last year in the earlier IFCI bond series that matured in 2021-22.