r2i forum

Does anyone know .... ?

For Non Convertible Debentures (NCD's), in demat form, when the interest is to be credited at the end of the term (say 5 years), do I pay income tax on the interest on an accrual basis each year? Or do I pay income tax in the 5th year on the entire interest amount received? I will be holding the NCD for the full term.

Thanks in advance

Tax becomes due on accrual.

You need to account for intt on an annual basis and pay any incom tax due.