How are NCDs taxed?

I bought a NCD of face value Rs 5,000 from the secondary market for Rs 5,200. Annual interest was Rs 500. I bought it when it was about to mature in four months. On maturity, I got Rs 5,500. So my gain is Rs 300. How will this be taxed? 1) Capital gain of Rs 300 2) Interest income of Rs 300 3) Interest income of Rs 500 and capital loss of Rs 200 - Vineet Mittal To understand how NCDs are taxed, we need to know the types of income that can come from them. But what are NCDs? For those who are unfamiliar,

This article was originally published on March 23, 2023.