2.Please consider following aspects.

3. Income Tax on T-Bills is the point of discussion.
T-BILLS are not scrips. They are promissory notes.
They are purchased at a discount. Discount cannot be treated as "prepaid upfront interest". Reason is had it been so ,then TDS would be applicable and deductible upfront. There is no TDS so it's not in the nature of " upfront interest".
4.The question now arises, if it's not a "security qualifying for Capital Gains" as it's not issued as a scrip, it's not in the nature of interest as no TDS, then what should be the income tax on T-Bills if any? How to report in ITR?

5.Since we are taking the case of individual , the question is " Is there an IndAS that justifies deduction of income tax on "discount on promissory notes" OR is there any sec of Income Tax Act which allows income tax on discount on promissory notes?"

6.I have not been able to find any justifiable section or standard for this.

7. Now, if you can show the same it would be a great help.

8.T-Bills are instruments where there is no TDS and no Income Tax thus it is a profitable shift from commercial banks.

I request your response.