I invested some amount in RBI floating bonds this August. As I understand, it’ll give me half yearly interests on 1st January and 1st July every year.
My question is what is my tax liability for this year? The interest I get on January 1, or that plus some accrued interest based on the rate announced on January?
If that is also part of my tax liability, is there a way to get an estimate of the amount for advance tax purposes? Not now, but at least before March?
Tax liability for this year will be calculated on the interest you get in January plus accrued interest for 3 months based on the rate announced on January.
Only way to get an estimate of the interest amount for advance tax purposes is to calculate the interest on your own by considering the maturity value of the bond.
Hope this helps!
Thank you @Laxmi_Navlani
Can you please clarify one thing? Like the paid and accrued interest on SB a/c is shown in bank interest certificate and that for FD in 26AS, does RBI issue any such statements?
We have not seen any such statements issued by RBI. You can write back to them and try to get the statements. You can also use the online calculators that are available to calculate the interest.
Hope this helps!