Convertible V/s non-Convertible debenturesConvertible debentures can be converted into equity shares of the issuing company after a predetermined period. They are more attractive to investors since theycan convert into sharesand attractive to companies since they typically have lower interest rates than non-convertible debentures. Non-Convertible Debentures: As the name suggests such debentures do not have an option to be converted to shares or any kind of equity. Since they are not able to convert, they usually carry higher interest rates than convertible debentures. Taxation of Debentures in the hands of the investorInterest Income from debentures is taxable under the head ‘Income from Other Sources’.

Source: The Herald September 13, 2020 19:52 UTC