Debenture Redemption Investment (DRI)

• DRI means investing at least 15% of debentures maturing by 31st March of next year.
• This investment must be made on or before 30th April of the current year.
• AIFIs, banks, NBFCs (unlisted), HFCs (unlisted) and some financial institutions are exempt.
• Investment is made in specified securities like bank deposits and government bonds.
• If debentures are redeemed in instalments, the investment remains until the final instalment is paid.

1. For Income Received with TDS Deducted:

Bank A/c                                         ...Dr.

TDS Collected (Receivable) A/c    ...Dr.

        To Interest Earned A/c

2. On Investment or Deposit being made in specified securities:

Debentures Redemption Investment A/c       ...Dr.

         To Bank A/c

3. On Realising the Investment:

Bank A/c                                                                                                                  ...Dr.

Loss on Realisation of Debenture Redemption Investment A/c (in case of loss)    ...Dr.

       To Debentures Redemption Investment A/c

       To Gain on Realisation of Debenture Redemption Investment A/c (in case of gain)

4. Interest Income and TDS on Interest:

Bank A/c                    ...Dr.

TDS Collected A/c     ...Dr.

      To Interest Earned A/c

5. Gain on Realisation (Sale) of Investment:

Gain on Realisation of Debentures Redemption Investment A/c    ...Dr.

      To Settlement of Profit & Loss

6. Loss on Realisation (Sale) of Investment:

Statement of Profit & Loss       ...Dr.

     To Loss on Realisation of Debenture Redemption Investment A/c