Differentiate between NCD and FD.

NCD v/s FD

NCD	VS	FD
Corporates	Issued through	Banks & Corporates
9%p.a - 10 % p.a	Interest rate	4%p.a - 7 % p.a
Taxable interest	Taxation	Taxable interest
No (if its dematerialisation plan and being listed)	TDS	Applicable (10% for more than 10,000 amount)

 

* NCDs held for longer than 12 months are eligible for capital gains.

** TDS is not deductible at source for securities issued by companies in a dematerialized format. They are listed on Indian stock exchanges that have been recognized in India according to the Securities contract Act 1956 and its rules.