Buy back of Tax saving bond

[HARIKUMAR PG]

I invested ₹ 20000 in IFCI Infrastructure bond in FY 2011-12 and got redeemed it in FY 2018-19(buy back by IFCI). Whether the income earned is treated as Capital gain or interest income?

AI Summary

Tax Implications on Redeeming IFCI Bond: Income Classified as Interest, Not Capital Gain, Taxed Annually. An individual inquired about the tax implications of redeeming a tax-saving bond from IFCI, purchased in the fiscal year 2011-12 and redeemed in 2018-19. The query focused on whether the income earned should be classified as capital gain or interest income. The response indicated that it would not be considered a capital gain; instead, the interest accrued annually is subject to taxation.