What is the difference between NCD and FD?

asked Monday, July 30, 2018

NCD v/s FD
NCD	VS	FD
Corporates	Issued by	Bank and Corporated
9.00% p.a. - 10.00% p.a.	Rate of Interest	4.00% p.a. - 7.00% p.a.
Interest is taxable (Long term capital gains taxed 10% without indexation)	Taxation*	Interest is taxable
No TDS(if it is a listed and in dematerialized plan)	TDS**	TDS Applicable (@10% if the interest amount exceeeds to Rs 10,000)

* NCD held for more than 12 months qualify for long term capital gains.

** With respect to TDS as per section 193 of the Income tax Act, no income tax is deductible at source on any security issued by a company in a dematerialized form and is listed on recognized stock exchanges in India in accordance with the Securities contract Act 1956 and the rules made there under with affect from June 1, 2008

answered Monday, July 30, 2018

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What is the difference between NCD and FD?

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