tax on selling of tax free bond

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  1. PARIMAL KUMAR RAY

    PARIMAL KUMAR RAY New Member

    I INVESTED RS.115000/IN TAX FREE BOND IN JAN, 2012 AND SELL ALL IN FY-2014-15 FOR RS 131000/THROUGH MY DEMAT A/C .I AM RETIRED PERSON IN TAX BRACKET 10%HOW MUCH TAX I HAVE TO PAY
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Sir,
    As per my knowledge demat a/c is used only in case of purchase & sale of securities through stock exchange.
    so your tax free bond comes under listed security which is subject to STT.
    Sale of listed securities held for more 12 months is exempt from tax u/s10(38).
    you hold tax free bond for more than 12 months.so there is no need to pay tax.(IF IT IS A LISTED SECURITY SUBJECT TO STT).Else.

    suppose if it is an unlisted security and sold it after 10th JUL 2014.Then it comes under short term capital gain and is taxable @10%.
    TAX=(131000-115000)*10%=1600
    Or otherwise if you had sold it before 10th JUL 2014,then it comes under long term capital gain and taxable @20%.
    TAX=(131000-115000)*20%=3200.
     
    Last edited: May 15, 2015
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