How are capital gains from the sale of bonds and debentures taxed?


Capital gains earned from the sale of bonds and debentures are taxed based on the holding period and listing status. 


Type of Security 
Holding Period 
Type of Capital Gain 
Tax Rate 
Listed Bonds & Debentures Less than 1 yearShort-Term Capital Gains (STCG) As per your income tax slab 
Listed Bonds & DebenturesMore than 1 year Long-Term Capital Gains (LTCG) 10% of gain, without indexation 
Unlisted Bonds & DebenturesLess than 3 years Short-Term Capital Gains (STCG) As per your income tax slab 
Unlisted Bonds & DebenturesMore than 3 years Long-Term Capital Gains (LTCG) 20% of gain, without indexation 


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