a) SDIs (LeaseX, LoanX, BondX, InvoiceX): Returns are credited to the investor’s bank
account after deducting TDS as applicable (currently 25% for individuals and 30% for non
individuals). The returns have two components - (a) Principal repayment (tax free in the hands
of investor) and (b) Interest payment (to be offered to tax by the investor). The TDS deducted
by the Issuer can be adjusted against the total tax liability of the investor.

b) Corporate Bonds: Returns are credited to the investor’s bank account after deducting TDS as applicable (currently 10%).The returns have two components - (a) Principal repayment (tax free in the hands of investor) and (b) Interest payment (to be offered to tax by the investor). The TDS deducted by the Issuer can be adjusted against the total tax liability of the investor.

c) Baskets: Baskets is a product feature offered by Grip which allows Theme Based High-Yield Investing via a basket of Bonds and/ or SDIs. Since the Baskets constitute either Bonds or SDIs or both, the tax treatment will be the same as those products. If you have invested in a Bonds Basket, the taxation as explained in bullet (b) above will be true and if you invested in an SDIs Basket, the tax treatment as explained in bullet (a) above will follow.

The Issuer Corporate / Trust issues quarterly Form 16A which has the details around total
interest earned and TDS deducted thereon.

In case the investor sells the security before the maturity period, the difference between the
Selling price and the Purchase price less principal repayments will result in a Capital Gain /
Loss. Short Term Capital Gain is taxable at the slab rate of the investor. Any Short Term
Capital Loss can be adjusted against any other Short term capital gain or Long term capital
gain earned by the investor in that financial year.

Returns are credited to the investor’s bank account after deducting TDS as applicable
(currently 10%).The returns have two components - (a) Principal repayment (tax free in the
hands of investor) and (b) Interest payment (to be offered to tax by the investor). The TDS
deducted by the Issuer can be adjusted against the total tax liability of the investor.

In case your Total Income in any year is less than the threshold limits under the Income Tax
rules, you can apply for a lower / nil rate of TDS with the Issuer as below-

a) Corporate Bonds - you will have to apply to the Bond Issuer in the prescribed Form 15G or
15H. You may find the link to these forms on the website of the Issuer.

b) SDIs (LeaseX, LoanX, BondX, InvoiceX) - you will have to apply for a Nil / reduced
Withholding tax certificate with your Income Tax Assessing Officer with the prescribed Form
13.

Process for the same is as below:

• Investor calculates their likely income for the full financial year.
• Investor applies to the Tax Department with their provisional Income statement mentioning the names, PAN and TAN of the Tax deductor. Grip will provide you with these details.
•  Income Tax Department confirms the request within 30 days.
•  Investor submits this certificate to the Trustee for the respective SDI transaction or they
  can submit the certificate to Grip and we will submit on their behalf.
• Once approved, the Trust starts deducting TDS at a lower / nil rate. Grip will follow up with the Trustee on your behalf.
   

If you have invested in multiple SDI instruments during the year, you will have to include the
name of all the Issuer Trusts (as each SDI is managed by a different Trust). Please also note
that such certificate once granted, is valid only till the end of the Financial year and you will
have to re-apply for the same next year.

The type of Income Tax Return depends on various factors including legal nature of the
Investor (Individual, Corporate, LLP or a Trust), Investors total income, source & nature of
income etc. Investors should use the guide available on Income Tax website to determine
the correct ITR applicable to them
https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-
1#returnsandforms
Alternatively, we recommend that you seek advice from your tax advisor / Chartered
Accountant.

The financial year in India begins on the 1st of April and ends on the 31st of March next year.
So any income earned / accrued between 1st April to 31st March, needs to have the Income
Tax Returns filed on or before the defined deadlines. For individual investors not requiring tax
audit the deadline is generally 31st July while for most other types of investors it is 31st
October. If you have invested in any one of LLP deals in the past, the due date for you is 31st
October.

Grip is not authorized to file Returns on behalf of investors. Given the individual nature of
taxation, we advise you to file your Income Tax Returns yourself or take help of a professional.

As per the Income Tax rules, an investor has to disclose all sources of income in their ITR.
Such incomes could accrue from the two types of investments i.e. Quoted Investments or
Unquoted investments.

Quoted Investments can be accessed from Consolidate Account Statement (CAS). Examples
of these investments include SDIs, Corporate Bonds, Mutual Funds, Govt. Bonds and any
investment in the securities market. Income from such instruments are visible on Form 26AS
or Form 16A issued by the Issuer. Documents associated with these are also reflected in the
Annual Information Statement accessed on the Income Tax website.

Unquoted investments are those that can only be known to an investor implying that anything
not quoted is an unquoted investment. Examples of these include investments made in Post
Office savings, Start up Equity, Commercial Real Estate, Gold, Private Organizations, Real
Estate, Foreign Investments etc.

If you have incomes in any of the above categories then they must be included as part of your
ITR in the appropriate categories. For investments made via Grip platform, we will provide you
with GID (Grip Investment Declaration) by June 30th of the year that will reflect your
investments and returns.