Which taxes apply to G-Secs?

Income added to the bank account as interest is categorized as other sources of income, and taxes must be paid according to the applicable income tax slab. The increase in bond prices is treated as capital gains, with a fixed rate of 10% for long-term capital gains (LTCG). Short-term capital gains (STCG) are taxed based on the applicable slab rate. It’s important to note that there is no Tax Deducted at Source (TDS) for the interest payments received for G-secs.

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