Bond Interest Taxation

Bonds
1

My parents have an interest income from bonds and no salary income. So, they have bought these bonds from apps, so they had paid accrued interest during purchase. Will I need to add that under Section 57 iii and take as exemption/deduction? Or show the accrued interest under Cost of acquisition and get capital gain/loss?

Thanks

@Quicko

2

Hey @GuruV

If the interest earned has already been considered as “Income from other sources” in the ITR then you can simply add it under cost of acquisition while calculating capital gains.

Thanks

3

But shouldn’t I deduct the interest paid while buying from the interest income and just report the net value?

4

Hey @GuruV

The interest paid can be claimed as deduction under section 57 of Income tax act against the interest income from bonds.