Taxation of Bonds: Investor Perspective
The Fixed Income Securities are known for their security and certainty. As they are becoming popular across all sets of investors, it is important to understand their tax implications. With various securities from T-bills, to numerous types of bonds, the taxability differs for each product. Some bonds offer payouts that are tax-free, while some bonds help in tax savings, but are still taxable, whereas some bonds have their capital gain exempt but some bonds have a premium on redemption charged as interest and not capital gain.