Accrued income scheme is only applicable where seller sold his bonds before its interest income accrue? Secondly corporate bonds can be sold including interest or not? thirdly seller or purchaser has to tax on interest income that he received?
please explain the concept of accrued income scheme?
Thanks Sir in advance?
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Accrued Income Scheme
The explanations are in the lecture and accompanying study notes - may I ask if you have worked through them?
Thanks Sir, I gone through the lecture and study notes - I still have confusion in regards of above stated questions. can you please give brief explanation regards of accrued income scheme and where it is applicable?
Thanks
As per the study notes and lecture - the scheme is applicable to the disposal of government securities and corporate loan stock. The question will state, as per the example given in the notes that the security / loan stock is sold including the accrued interest - and the example clearly shows how the interest is divided between the seller and the buyer.
Thanks Sir
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