what are the tax implication of the maturity proceeds of this bond recived in April this F.Y.Are we to invoke indexation benefits ?
If you have held the bonds for more than 3 years, the maturity proceeds will be considered as LTCG and taxed @ 20% with indexation benefit. If the bonds are held for less than 3 years, the maturity proceeds will be considered as STCG and taxed at slab rate.
Hope this clarifies!
Thanks Mistry! index for this year released ?
Yes, the government has released Provisional index number of 348 for FY 2023-24.
thanks.Whether the actual index will be released after close of fy 23-24.Can i t return be filed on the basis of provisional index
The government will confirm the provisional CII before the filing of the next year begins. Till then you can use the provisional index for any calculations.
thanks NIYATI MISTRY