Premium on redemption of debenture
WebWhen the debentures are redeemed at a price more than its face value or the par value, then it is said that the debentures are redeemed at premium. The difference between the redeemed price and the par value is regarded as a capital loss and this loss is written off till the redemption of the debentures. The Premium on redemption of debenture ... WebPremium received, if any, on redemption of debentures can be considered as interest income. Profit from sale/ transfer of Debentures. If considered as capital gains (Capital Gains is calculated as total sale consideration as reduced by cost of acquisition and expenses incurred in connection with such transfer)
Premium on redemption of debenture
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WebPremium on redemption of debentures is shown under liabilities side of the Balance Sheet, so, it is a personal account. This premium is payable by the company on redemption of … WebAnswer: (a) Meaning of Redemption of Debentures by Conversion. Under this method, the debentures are redeemed by converting them into new class debentures or shares. At the …
WebMay 17, 2024 · Debenture Redemption Reserve: A debenture redemption reserve is a provision that was added to the Indian Companies Act of 1956 during an amendment in the year 2000. The provision states that any ... WebAug 1, 2024 · Lump sum redemption is when the debenture holders receive the amount they were promised on a specified date. According to this method of redemption, the debenture holders receive their agreed value in a single lump sum payment. The lump sum is the total principal amount of all debentures whose redemption occurs without a premium or …
WebOct 20, 2024 · When the Debentures are redeemed (payback) at the price above the face value. This excess amount is called a premium on redemption. Here redemption means … WebWhen the debentures are redeemed at a price more than its face value or the par value, then it is said that the debentures are redeemed at premium. The difference between the …
WebThe amount of debenture premium may be used for writing off debenture issue expenses discount on issue of shares etc. or alternatively it may be credited to Debenture redemption fund (if any). Accounting Treatment: The debenture premium may be called by the company on application or on allotment. (a) If premium is received on application: (i ...
WebRedemption of Debentures. Redemption of debentures refers to the repayment of these debentures by the company to the debenture holders. So the company will discharge its … st gerard church facebook san antonio txWebJun 8, 2024 · In cases of redemption of debentures, the debenture holder would be exposed to tax on the capital gains accrued on the redemption of debentures. ... Where the DBs carry coupon which is commensurate with the market rate, redemption premium could be arguably, regarded as capital gains. FPIs: LTCG – 10%; and STCG – 30 %. st gerard feastWeb7.75% UNSECURED RATED LISTED REDEEMABLE NON CONVERTIBLE BOND IN NATURE OF DEBENTURES SERIES 169 DATE OF MATURITY 15/04/2033: Instrument Description(short): INDIAN RAILWAY FINANCE CORPORATION LIMITED SR 169 7.75 BD 15AP33 FVRS1LAC: ... Redemption Premium Details: Step up / Step down coupon basis: Step up / Step down … st gerard factsWebDec 9, 2024 · At Par: The redemption value is equal to the face value of debentures. At Premium: The redemption value is higher than the face value of debentures. For instance, … st gerard feast newark 2020WebMay 17, 2024 · Debenture Redemption Reserve: A debenture redemption reserve is a provision that was added to the Indian Companies Act of 1956 during an amendment in … st gerard high schoolWebFeb 20, 2024 · The redemption value of the debentures is equal to the face value of the debentures. At a premium: The redemption value of the debentures is higher than the face value of the debentures. For example, if the face value of the debentures is Rs. 100, the redemption value can be Rs. 110 or 120 per debenture as agreed at the time of issue of … st gerard feast newark 2021WebTypically, the terms of redemption are stated in the debenture certificate. Notably, the approach behind redemption of debentures can be understood by glancing at these … st gerard church fort oglethorpe ga