Taxation Clarification on Bonds Interest

Hello everybody,

I not too long ago invested ₹1,08,788.82 in Shriram Finance Bonds by means of the Secure Cash app. They’ve talked about that I’ll obtain ₹9,000 as curiosity on December 19, 2024, and one other ₹9,000 on December 19, 2025.

Nonetheless, I observed that in my ITR, the whole curiosity of ₹18,000 (₹9,000 for FY24-25 and ₹9,000 for FY25-26) may be mirrored. This makes me surprise if I would wish to pay tax on your complete ₹18,000 rs as an alternative of simply 9,000.

May somebody please make clear how taxation works on this case?

Thanks on your assist!

@Quicko

Nonetheless, I observed that in my ITR, the whole curiosity of ₹18,000 (₹9,000 for FY24-25 and ₹9,000 for FY25-26) may be mirrored. This makes me surprise if I would wish to pay tax on your complete ₹18,000 rs as an alternative of simply 9,000.

fast Q for you: Have you ever opted for cumulative payout as an alternative of annual payout?

In case you might have opted for annual payout: As of now you haven’t recd any curiosity payout. You’re going to get Rs 9000 – 900 = Rs 8100 this 12 months (subsequent mth)… They may deduct 10% TDS earlier than crediting the curiosity.

If curiosity has not but been paid, there isn’t a manner that “the whole curiosity of ₹18,000 (₹9,000 for FY24-25 and ₹9,000 for FY25-26) may be mirrored” can occur. Curiosity is credited first solely & after that specific quarter ends, will the curiosity entry be seen in 26AS and AIS/ TIS. Generally it doesn’t even present up for 5-6 months…

If you’re referring to AIS/ TIS part on the IT portal after logging in, and whether it is certainly seen twice … then it may be a discrepancy… usually curiosity quantities are displayed twice… There’s a strategy to request for correction. You possibly can select the suitable choice within the drop down menu & say that it refers to a different FY & not present FY,…

Thanks for the detailed response! To make clear, I opted for the annual payout choice, not cumulative.

After I raised this concern with the Secure Cash crew, they suggested that whereas submitting my ITR, I ought to inform my CA to offset the ₹9,000 curiosity (which I’ll obtain subsequent month) in opposition to the ₹8,788 additional paid earlier.

From what you’ve defined, it appears that evidently if curiosity hasn’t been paid but, it shouldn’t be mirrored twice in AIS or TIS. Nonetheless, I’ll double-check this on the IT portal after the subsequent payout. If there’s a discrepancy, I’ll observe the correction course of as you urged.

Thanks once more for clarifying how this works!