13 March 2019
I am a resident senior citizen tax payer. I do invest in ELSS MF(Growth option) each financial year to save tax under section 80C of Income tax Act. I had invested as usual in some ELSS schemes in March 2016 which I intend to redeem now after completion of 3-year lock in period. Since introduction of LTCG tax by the central budget 2018, this the first time I will sell ELSS units. As such I am in need of some clarifications on calculation of LTCG from experts. The following example will be helpful for me. I had purchased 1690.846 units of a particular ELSS on 09.03.2016 at a price of Rs.29.57/unit. The total investment was Rs.50,000/- NAV of these unit on 31.01.2018 was Rs.44.8938/unit My sale price on 12.03.2019 is Rs.46.253/unit Appreciation in value since 31.01.2018=(46.253-44.8938)=Rs.1.3592/unit Hence total gain= 1.3592*1690.846=Rs.2298 Since, LTCG upto Rs.100000/- is tax free in a financial year, I am not required to pay any tax for this gain. Am I correct? Kindly, give me expert opinion.
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