How are my returns taxed?

Interest you receive on a plot investment plan is treated as income in your hands and taxed at your applicable income-tax slab rate. We don't deduct TDS on the maturity payout — you report and pay tax as part of your annual filing.

If your plot investment involves the underlying land being sold and you participate in the capital gain (this is structure-dependent and noted on the specific property's documentation), long-term capital gains on land are taxed at 20% with the indexation benefit. Long-term, in this context, means a holding period of more than 24 months.

At the end of every financial year, we email an investment summary you can hand to your CA. It includes the maturity amounts received, the interest component of each, and the relevant dates.

This article is general guidance, not tax advice. For your specific situation — particularly if you have other capital gains or claim Section 54F exemption — consult a chartered accountant.