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capital gain

Priyanka Ojha (40 Points)

28 February 2019

Can we avoid indexation while calculating tax on long term capital gain on mutual fund?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (162278 Points)
Replied 01 March 2019

Yes, in certain cases tax @ 10% can be computed on LTCG gains.

In case the tax computed @ 20% on LTCG (with indexation) is more than the tax computed @ 10% on LTCG (without indexation), then you can pay the latter amount as LTCG tax.

This option is only available to a resident individual. Further, this option can only be availed if the LTCG is from the sale of listed bonds, units of a debt mutual funds, non equity ETFs or from the maturity of a zero coupon bond.