Tax alert: Surplus from redemption of zero coupon non-convertible debentures is taxable as interest, not capital gains has been saved
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Tax alert: Surplus from redemption of zero coupon non-convertible debentures is taxable as interest, not capital gains
13 May 2024
The Mumbai Bench of the Income-tax Appellate Tribunal has held that the surplus received by the taxpayer from redemption of zero coupon non-convertible debentures was in the nature of interest income taxable under the head ‘Income from Other Sources’, and not under the head ‘Capital gains’.