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Financial Planner - Answered on Nov 29, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by ASEEM on Nov 29, 2022Hindi

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I having two types of RBI taxable bonds. For one type which is non-cumulative I get interest regularly after 6 months. Tax is deducted at source and I show it as income in my ITR.

The other is cumulative type which shall get matured in the FY 2023-24. Since no tax has been deducted on interest and nothing was crediting to my bank account during the last 6 years, so no interest income for these bonds was shown by me in my return.

Is it correct from IT point of view?

Next year when the principal and interest shall be credited to my account, the TDS be deducted at source, interest income shall be shown by me in my ITR. Hope my point of view is correct from ITR point of view.

Ans: Yes, this is right from ITR point of view as you are accounting for it on a receipt basis.

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Anil Rego |388 Answers |Ask -Follow

Financial Planner - Answered on Jan 04, 2022

Question by Satish - Jan 04, 2022Hindi

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I have two queries. (a) After seven years, I received an L&T Infrastructure bond maturity amount of Rs 44,400. When I initially applied for these bonds, I submitted my PAN, still no TDS was mentioned. Is this complete amount included as additional income in my tax return? (b) Annually, Rs 715 as gold bonds interest is credited to my saving bank account. In my IT return, I include 4*quarterly interest amount as income. Saving bank interest on Rs 715 is also included in the quarterly interest. Am I to include, separately, a sum of Rs 715 in my yearly income for income tax purposes?

Ans: Here are the responses:

(a) The interest on the bonds is taxable in the hands of investors.

The full maturity amount is not taxable.

You need to reduce the invested amount to arrive at the interest you have received and you would need to pay tax on this interest received.

(b) The interest on gold bonds is taxable and hence you need to show this in your returns.

The saving account interest is to be shown separately as it attracts deduction under section 80TTA for upto Rs 10,000 and you would need to pay taxes only if it crosses this limit.

In summary, you need to show both the interest on gold bonds and the savings account interest, but separately and after claiming the deduction above for savings bank interest.

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