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Calculation of Capital Gain

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Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2010 Dear Sir, Whether the income from capital gain arise in case of the loss provided on the valuation of the shares & mutual fund in earlier year which reversed during the year ?. Further whether the income from capital gain arises due to the mutual fund of one scheme has switch to another scheme of mutual fund ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 November 2010 Generally, in case of Investment capital gain arises only when it is sold or transferred. If there is no transfer, question of capital gain or loss will not arise.

It is deemed that the fund remains the same even after switch over to other schemes in the same mutual fund. It is not treated as transfer, hence no capital gains/loss will arise.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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29 November 2010 switch over to other schemes in the same mutual fund is regarded as transfer and capital gain / loss is to be worked out

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