The ITAT has held that the accrued interest component embedded in sale proceeds from non-convertible debentures cannot automatically be treated as capital gains and may instead be taxed as interest income. Tax experts say the decision could trigger greater scrutiny and fresh litigation.
The Income Tax Appellate Tribunal (ITAT) has ruled that the accrued interest component embedded in sale proceeds from non-convertible debentures (NCDs) should be taxed as interest income, not capital gains. This landmark decision could significantly impact taxpayers, potentially…
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