Tax implications on profits from Equity Linked Capital Protected Debentures

[Sameer Kapoor]

I invested Rs. 1 lakh in Equity Linked Capital Protected Debentures. I held these debentures for 2 years and since Nifty performed well, I got a profit of Rs. 30,000 on these debentures. Now, I am unable to understand the tax implication on the profit during the current financial year. Is this a long term capital gain? Am I liable to pay tax?

[samkapoor77]

Equity Linked Capital Protected Debentures are in the nature of debt product. Since you have hold these debentures for more than 2 years, your profits are long term capital gains and you have to pay tax accordingly.

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