Is interest on REC bonds taxable?
The NHAI and REC bonds carry interest at 5.75 per cent per annum, payable annually wef 01.04. 2018. The interest earned on these bonds is fully taxable under the head “Income from Other Sources”. No tax at source would be deducted from the interest on these bonds.
What is current interest rate on 54EC bonds?
Investment amount: Minimum investment in 54EC bonds is 1 bond amounting to Rs. 10,000 and the maximum investment in 54EC bonds is 500 bonds amounting to Rs 50 lakhs in a financial year. Interest Rate: 54EC bonds offer 5% rate of interest payable annually.
Is interest on IRFC bonds taxable?
IRFC N1 series The bonds are rated AAA and offer tax free income to investors. IRFC is a government owned entity and hence there are no worries on the safety of the instrument. It is important to note that the current market price of the bonds are Rs 1,053, as against the issue price of Rs 1,000.
Which is better REC or NHAI bonds?
REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.
What is the interest rate on REC bonds?
These Capital Gain Bonds which help in saving tax can only be issued by the National Highway Authority of India (NHAI) or the Rural Electrification Corporation of India (REC). The Interest Rate on the Capital Gains Bonds is 5.75%. The Interest @ 5.75% is payable annually by both NHAI as well as REC.
Is bond return taxable?
The bonds are tax-free, secured, redeemable and non-convertible in nature. Tax status: The interest income earned is exempt from tax under Section 10 (15) (iv) (h) of the Income Tax Act, 1961.
Which bonds are non taxable?
Corporate Bonds. Bonds used to fund local and state government projects like buildings and highways are afforded tax-exempt status at the federal level. Plus, people who purchase bonds issued by their states or localities may not be required to pay state or local taxes on the interest.
Are REC bonds safe?
The Bonds issued by NHAI & REC are AAA Rated Bonds indicating that they are highly stable and the face value of each bond is Rs. 10,000.
Can REC bonds be redeemed before maturity?
The NHAI /REC bond can be fully redeemed at maturity after three years. You cannot transfer these bonds in another person’s name. Also, it is a non-negotiable financial instrument, hence one should not expect to get money by keeping the bond as a security against any loan or advance, since this is not permitted.
Is TDs to be deducted on the interest received?
No TDS shall be deducted on the interest received as these bonds are issued Compulsorily in demat mode and shall be listed on NSE & BSE. Are these infrastructure bonds tax free? Can a minor apply for subscription to these bonds?
Interest on rec bonds is taxable. But in the section it’s mentioned that interest on capital bonds is exempt and REC is covered in capital bonds CA. Ritu Agarwal (CEO) (52 Points) Yes, you are right. form part of the total income. “The entire interest received will be exempted, no restriction on the amount of interest.” Thanx ritu mam.
What is TDs under section 193 for insurance companies?
Interest to any other insurer on the securities owned by it or in which it has a full beneficial interest. Interest on securities only if issued by a company in dematerialized form and listed on the recognized stock exchange. There is no exemption limit specified in case of TDS under section 193 except two following cases;
What is the TDs on 15000 interest on a bank loan?
Since the amount is more than Rs. 10,000, bank is liable to deduct TDS @ 10% on the whole amount of interest i.e Rs. 15,000. Even is such amount is not actually paid and only credited to customer account then also TDS is to be deducted.