Interest On Securities - Definition - Law Dictionary Home Dictionary Definition interest-on-securities

Definition :

Interest on securities, means interest on promissory notes or bonds issued by the Government of India or any other State Government or the interest on debentures or other securities issued by or on behalf of a local authority or company. It being a specific head of chargeability of tax, income from 'interest on securities' whether held as a trading asset or capital asset would have to be taxed under s. 8 and not under s. 10 of the Act, United Commer-cial Bank Ltd. v. Commissioner of Income Tax, AIR 1957 SC 918: (1958) SCR 79.