Personal Finance Did you know? Cumulative interest earned on NCDs is interest income, not capital gains Updated : April 26, 2019 09:09 AM IST NCDs are fixed-return instruments issued by companies when they want to borrow money. Typically, NCDs come with a credit rating; the higher the rating, the lower are the coupons paid, and vice-versa. Most NCDs provide the option of receiving interest payments either monthly, quarterly or annually. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.