Indian Tax Rules for NRIs Selling Bonds: A Summary

If an Indian who lives in Australia sells a bond in India before it matures, they have to pay taxes.

This is because the profit from selling the bond is considered a capital gain, taxed at a specific rate.

Because the bond was held for over a year, it's treated as a long-term capital gain.

India will tax these gains.

However, since they also live in Australia, Australia could tax the same money too.

But, Australia has a deal with India where they give you credit for the taxes you already paid in India, so you don't pay taxes twice on the same money.

You have to report this in both countries and may need a tax advisor.