Bharat bond fof -april 2023-direct plan growth

Income Tax Income Tax Notices
1

what are the tax implication of the maturity proceeds of this bond recived in April this F.Y.Are we to invoke indexation benefits ?

2

Hello @Xavier_Thilagaraj_Gm,

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!

3

Thanks Mistry! index for this year released ?

4

Hey @Xavier_Thilagaraj_Gm,

Yes, the government has released Provisional index number of 348 for FY 2023-24.

5

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

6

Hey @Xavier_Thilagaraj_Gm,

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.

1 Like
7

thanks NIYATI MISTRY