Investments u/s 80C
This query is : Resolved
CA Satyen Sharma
(Querist)
24 March 2008
Dear All
My query related to investments u/s 80C wherein funds are locked for a 3 yrs period. If for instance I invest in an ELSS Mutual Fund, I get units allotted in my name. After a 3 yr lock in period, it is taxable, if redeemed.
My question is that whether MF is considered as security under the Securities Contract regulation Act, if yes, then it would be a long-term capital gain on securities, which would not be taxable.
Then why is the whole amount subject to tax wherein the principal amount is also involved along with appreciation
Pl. suggest.
C.A.Satyen Sharma
My query related to investments u/s 80C wherein funds are locked for a 3 yrs period. If for instance I invest in an ELSS Mutual Fund, I get units allotted in my name. After a 3 yr lock in period, it is taxable, if redeemed.
My question is that whether MF is considered as security under the Securities Contract regulation Act, if yes, then it would be a long-term capital gain on securities, which would not be taxable.
Then why is the whole amount subject to tax wherein the principal amount is also involved along with appreciation
Pl. suggest.
C.A.Satyen Sharma
24 March 2008
because while investing the amount ur income was reduced under section 80C.
it is very similar to sec41(1) of income tax act.
it is very similar to sec41(1) of income tax act.
CA. Kirti S. Ganatra
(Expert)
25 March 2008
NO, it is long term capital gain and it is not taxable. It is like securities sold and LTCG is not taxable
CA Satyen Sharma
(Querist)
25 March 2008
I have received diversed views.
Pl. clarify
Pl. clarify
CA Harish Suwalka
(Expert)
31 May 2012
if a investement which is claimed u/s80c, is sold within lock in period than the whole net proceeds from sale will be taxable as capital gain
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