These bonds are categorized as REGULAR, TAXABLE and TAX-FREE.
Now, The question is NOT regarding TAX-FREE BONDS …
Please READ AGAIN, the question is NOT REGARDING TAX FREE BONDS.
Now,
The other two categories are REGULAR and TAXABLE … There is absolutely NO information available anywhere about the DIFFERENCE between TAXABLE and REGULAR bond … not on this forum, not on web, not on NSE site … at least I could not find it .
Does anyone know what is the difference between REGULAR and TAXABLE bonds ? …
The difference is the interest income on a tax-free bond is exempt from taxation whereas it is taxable in case of a regular bond.
Quoting from the HUDCO bond prospectus
The Bonds are classified as ‘tax free bonds’ issued in terms of Section 10(15)(iv)(h) of the Income Tax Act and the CBDT Notification. In accordance with the said section, the amount of interest on such bonds shall be entitled to exemption under the provisions of Income Tax Act. Therefore only the amount of interest on bonds is 24 exempt and the amount of investment will not be considered for any deduction/ exemption under the Income Tax Act. For further details,
All this is disclosed in the prospectus of the bond issue which can be found on the respective company’s website.
which part of … do read the question correctly… was hard for you to understand? Scroll up… go to first post of this thread … read PROPERLY the question asked … then read the answer … and you will find illumination.
There are three types of bonds - REGULAR, TAXABLE and TAX-FREE.
Tax free bonds means there won’t be tax on interest.
but what is real difference between remaining two categories? (regular vs taxable)
