Taxation on bonds

I want to know how taxes are calculated on bonds with quarterly interest receivable.


As per an article on Quicko’s website, that interest income will be taxed as per slab rates unless it is from tax-free bonds

IFOS Income from Bonds & Debentures

Interest Income from Bonds and Debentures is taxable under the head ‘Income from Other Sources‘ i.e. IFOS. The Interest Income is taxed at slab rates. If the assessee has incurred an expense (like commission or fees or remuneration etc) to realize such Interest, it can be claimed as a deduction from the Interest Income.

Interest Income from Tax-free bonds is fully exempt. Tax-free bonds are the bonds issued by public undertakings like National Highway Authority of India, Rural Electrification Corporation, NTPC Limited and Indian Railways, Indian Renewable Energy Development Agency, Housing and Urban Development Corporation, Power Finance Corporation and Rural Electrification Limited.

Interest on tax-free bonds is exempt. Interest on other bonds and debentures is taxed at slab rates under IFOS. Income on sale of bonds and debentures is treated as Capital Gains. You can read more about the tax rates and tax treatment here - Income Tax on Bonds & Debentures
Hope this helps :slight_smile:

As per above images in last 6 quarter we are getting 25% face value.

Do we have to pay tax on face value or only on interest received ?


If you have sold the Bonds or Debentures, Capital Gains Income arises and tax should be paid at applicable rates. If you have not sold Bonds or Debentures during the financial year, there is no income and thus tax is not required to be paid.

Did u buy online

Wat is risk factor ?

Seemes pretty good return.

Is it 100% safe

Check Goldenpi website.

It depends some are secured and others are unsecured. You can check this on wesite.

You can buy from GoldenPi.

1 Like


State Govt Guaranteed Bond------

Is it 100% safe or 99%

Any chance of default. Possible ?

@anon31396786 is ur up gov bond is 100% safe ?

I know its secured bt backed by what ?

Is dhfl case have any impact on unsecured bond issues by up gov Power corop

Tx a lot for info and ur time :blush:
Gud night :sleeping: