Taxability of Interest on NCD`s

[Rajendra Pant]

Dear All,

My company have bought some NCD of Religare Finvest Ltd in September 2011 issue. Can somebody help me out that what would be the tax liability on interest income of above debentures.

Also need one more favour that which NCD`s interest income is partly / fully exempt from Income Tax.

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Taxability of interest on NCDs: query on income tax liability and exemptions for debenture interest unresolved. Taxability of interest on non convertible debentures is queried: whether interest receipts from purchased NCDs are subject to income tax and which categories of NCD interest may be partly or fully exempt. The record contains no substantive answer and only a follow up request for clarification.