Taxation of bonds

Do we have TDS on interest earned from bonds ? If yes, how is the tax slab decided by the issuer, from where do they get information of our income ?

@Quicko Can you.

Hey Abhijeet,

If it is a tax free bond, interest is exempt.

If it is a taxable bond, interest is taxable and TDS is liable to be deducted under Sec 194A. The applicable TDS rate for the same is 10% (reduced to 7.5% due to Covid-19).

Hence, TDS is not deducted based on any applicable slabs.

Read more about Section 194A on our Learn Center.

Hello @Quicko,

Can you tell me on which quicko webite category/column should I fill the amount that I have received from my relatives and parents? And Is it taxable?

Hey @Quicko can you answere my question, this is the first time I am trying to file my tax by myself without the help of any CA!

Hey Gaurav,

You can add the amount received as gifts under Income from Other Sources.

Check out this video on How to Add Income From Other Sources on Quicko.

Incase you need any help with your returns, feel free to reach out to us :slight_smile:

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Hello @Quicko,

Thank you for your help! I have inserted all the details, now in final E-File page it is saying “Balance Sheet
Needs Review” and I don’t know what to do with ‘Liabilities’ column, I have inserted all the details about ‘Assets’!

Let me know if you can help me with that! I think it’s the last step!

Thank you!

Hey @Gaurav2k,

When reporting a balance sheet it is mandatory to match your Asset with your Liabilities. The most common ways taxpayers use to match both in the balance sheet - by adding the following under liabilities:

  • Proprietor’s Capital i.e. the amount that you bring into the business activity.
  • The amount that you have borrowed to start the business activity under
    • Loans Received usually used for long term loans
    • Current liabilities > Creditors usually used when adding short term loans

Like always, We have special discounts for Zerodha Traders :wink:

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