https://www.taxtmi.com/forum/issue?id=1597 Premature encashment of bonds acquired under the specified investment provision causes loss of exemption and results in taxability under the capital gains provision. The tax is triggered in the year the holding-period condition is violated; therefore proceeds encashed by legal heirs on the holder's death before maturity are taxable in that year. en-us Mon, 09 Nov 2009 15:46:44 +0530 Thu, 23 Jan 2025 15:58:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1597 Premature encashment of bonds acquired under the specified investment provision causes loss of exemption and results in taxability under the capital gains provision. The tax is triggered in the year the holding-period condition is violated; therefore proceeds encashed by legal heirs on the holder's death before maturity are taxable in that year. Discussion-Forum Income Tax Mon, 09 Nov 2009 15:46:44 +0530 https://www.taxtmi.com/forum/issue?id=1597