India - Delhi High Court Ruling on Tax Treatment of Proceeds from the Sale of Compulsorily Convertible Debentures
- P.R.K. Jhabakh
- Derivatives & Financial Instruments, 2014 (Volume 16), No 5
- 25 September 2014
This article analyses a recent ruling of the Delhi High Court, which set aside the ruling of the Authority for Advance Rulings in the Zaheer Mauritius case. The Court held that proceeds from the sale of compulsorily convertible debentures are taxable as interest income and not as capital gain.