NCD is Taxable or Not ?

Yes, NCDs can be subject to both Short Term Capital Gain (LTCG) and Long-Term Capital Gain (LTCG) taxes.

Capital gain taxes will apply if the NCDs are traded on the stock exchange.

• Short term capital gains taxes will apply to NCDs that are sold within 12 months of the date of allotment.

• Long term capital gains taxes apply to NCDs that are sold within 12 months of the date of allotment. The rate is either 10% without indexation, or 20% with indexation.