Question: ncd is taxable or not?
Answer: For both bank FDs and NCDs, the interest earned during the year is to be added to your total income and hence it is entirely taxable as per your income tax slab. ... For NCD offering 9 percent, the post-tax return for someone in the 5%, 20% and 30% tax brackets works out to 8.5%, 7.12% and 6.2%, respectively.