What are the applicable taxes for G-secs?

TradeJini G-Secs Taxation FAQs

Q1: How are taxes calculated for Bonds and SDL in TradeJini?

A: For Bonds and SDL on CubePlus, the interest credited to your bank account is treated as income from other sources, and taxes must be paid according to your income tax slab. Any appreciation in bond prices falls under the category of capital gains. Long-term capital gains (LTCG) are taxed at a flat rate of 10%, while short-term capital gains (STCG) follow the applicable slab rate. Importantly, there is no Tax-deducted-at-source (TDS) for the interest payments received on G-secs.

Q2: What is the taxation process for T-bills in TradeJini?

A: T-bills on CubePlus are bought at a discount and sold at par. The appreciation is considered as Short-Term Capital Gains (STCG) and is taxed as per the applicable slab rate.