calculations for mutual fund capital gain or loss
This query is : Open
23 June 2016
I am filling my dad return he is investing mutual fund in hdfc equity fund SIP from 2007 and in 2014 March he just redeem the 1200 share and balance 1000 share was redeem in April 2014.
how will I calculate capital gain or loss in this and in itr wat is the treatment?
plz reply
Vipin Garg
(Expert)
23 June 2016
Hello Ma'am,
Before computing the Capital Gain Tax on Mutual Fund/Shares first we have to calculate the holding period to identify the Short Term /Lon term gain/loss.
In case of Shares/Mutual Fund, If period of holding is less than 12 Months then it will be short term capital gain/loss otherwise it will be long term capital gain/loss.
Treatment of Long Term Capital Gain/Loss:-
1. If we have paid Security Transaction Tax (STT) then the amount of Capital Gain/loss will be expected under section 10(38) of Income Tax Act, 1961.
2. If STT has not been paid then rate of tax will be 20% (in case of Indextion Benefit is given) otherwise it will be 10%.
Note: - Long term capital gain is exempted from tax even in that it should be shown under Income Tax Returns.
Treatment of short Term Capital Gain/Loss:-
1. If STT has been paid on the same the rate of tax of the same will be 15% under section 111A.
2. If STT has not been paid then normal rate of tax will apply.
Before computing the Capital Gain Tax on Mutual Fund/Shares first we have to calculate the holding period to identify the Short Term /Lon term gain/loss.
In case of Shares/Mutual Fund, If period of holding is less than 12 Months then it will be short term capital gain/loss otherwise it will be long term capital gain/loss.
Treatment of Long Term Capital Gain/Loss:-
1. If we have paid Security Transaction Tax (STT) then the amount of Capital Gain/loss will be expected under section 10(38) of Income Tax Act, 1961.
2. If STT has not been paid then rate of tax will be 20% (in case of Indextion Benefit is given) otherwise it will be 10%.
Note: - Long term capital gain is exempted from tax even in that it should be shown under Income Tax Returns.
Treatment of short Term Capital Gain/Loss:-
1. If STT has been paid on the same the rate of tax of the same will be 15% under section 111A.
2. If STT has not been paid then normal rate of tax will apply.
Message likes :
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23 June 2016
thank you vipin :-)
now that I know it is exempted then how should I show it in itr2
please help
Vipin Garg
(Expert)
23 June 2016
You have to shown under exempted income under section 10. This income is exempted from tax under section 10(38).
23 June 2016
in sheet CG of itr should I show.. cost of acquisition etc detail
Vipin Garg
(Expert)
23 June 2016
yes... you have to all the details of calculation... like sale value amount of stt paid, cost of acquisition
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