Zerodha
G-Sec
Taxation
G-Sec taxes on Zerodha
G-Sec taxation in India has two components: coupon income and capital gains.
1. Coupon income
- Taxed as “income from other sources” at your slab rate.
- Reported annually based on coupons received in the financial year.
- TDS not deducted by RBI/Zerodha (sovereign instruments).
- Self-declared in your ITR.
2. Capital gains on sale
| Holding period | Treatment |
|---|---|
| Less than 12 months (listed) | Short-term, slab rate |
| 12+ months (listed) | Long-term, 12.5% (post FY2024-25) |
Indexation benefit was removed post-FY 2024-25 Finance Act for most debt instruments. Confirm applicable rates for the current FY before filing.
3. T-Bills
T-Bills (zero-coupon) have only capital gain on maturity (face value - purchase price). Treated similar to dated G-Sec.
4. STCG vs LTCG categorisation
For listed securities (G-Secs traded on exchange), the 12-month rule applies.
CA caveat
For complex tax situations or large G-Sec holdings, consult a Chartered Accountant before filing. Tax rules change annually; this overview reflects rules as of the FY 2025-26 framework.
See also
- Government Securities (G-Secs) on Zerodha
- Buy G-Sec on Zerodha
- Buy T-Bills on Zerodha
- Buy SDL on Zerodha
- SDL vs T-Bills vs G-Secs comparison
- Calculate G-Sec returns
- Maturity event for G-Secs
- Exit G-Sec before maturity
- Interest credit for G-Secs
- Interest payment schedule for G-Secs
- G-Sec bid cut-off times
- Allotment time for SDL/T-bills/G-secs
- Charges for G-Sec on Zerodha
- Indicative yield on G-Secs
- G-Sec nomenclature
- Edit / delete G-sec order on Kite
- Money debited greater than allotment
- Allotted G-Secs not visible
- T-bill allotment less than Rs 100 face value
- Dirty price vs clean price buy average
- G-Sec P&L on Console
- Reserve blocked basis for G-Sec
- CDSL SMS for T-bill maturity
- SDL/T-bill/G-Sec issuance calendar
- NRI G-Sec investment via Zerodha
- SGB tax treatment on Zerodha
- Zerodha bonds platform
- Reserve Bank of India
- Zerodha
External references
References
- Income Tax Act 1961, Sections 56, 48, 112.
- Finance Act 2024 / 2025, capital gains amendments.
- CBDT circulars on debt instrument taxation.