Please advise tax treatment of NCDs. If a listed NCD is held for more than one year, I understand, it can be trated as long term capital gain. If option is that of cumulative, will it be right not to consider the interest accruing and pay tax only on capital gains, after sale of NCD?
Dear waryabs, Yes in case of NCDs if these r listed on Exchange, U can sell these off after 1 Year to claim ur gains as LTCG. I assume u r in 20.6 or 30.9% Tax category so paying LTCG Tax is favorable for u.
Dear somnathsahu, The interest received in between `ll be treated as interest income & it `ll be added to ur income from all other sources & `ll be taxed at ur marginal rate of tax.
Dear friends. as the NCDs r listed on Exchange & if u want to sell it, the gains if any `ll be treated as STCG (as u r selling b4 completion of 1 year) & u `ll be taxed accordingly.
| NIFTY 
