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Does NCD have indexation benefits?

Yes, NCDS are eligible to get indexation benefits. For an investor who sold NCDs after a year, the amount of profit or capital gain received is known as long-term capital gain and is taxed at 20% LTCG tax rate with indexation.

The indexation adjusts the purchase price or investment value of NCDs for inflation and thereby reduces the taxable capital gain and the tax liability.

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