Mutual fund,ppf,nsc

This query is : Resolved

VAIBHAV SHUKLA (Querist)
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10 December 2013 PLEASE ANSWER MY FOLLOWING QUERIES
1.IS PPF MATURITY VALUE EXEMPT OR NOT
2.IS NSC MATURITY VALUE EXEMPT OR NOT
3.TREATMENT OF MUTUAL FUND RECEIPTS GIVEN IN BANK STATEMENT
4.IS MUTUAL FUND MATURITY VALUE EXEMPT OR NOT
FOR THESE POINTS ANSWER TREATMENT AND SECTION

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 December 2013 PLEASE ANSWER MY FOLLOWING QUERIES 1.IS PPF MATURITY VALUE EXEMPT OR NOT
Reply : Exempt.

2.IS NSC MATURITY VALUE EXEMPT OR NOT
Reply: NSC interest is taxable fully if not considered on accrual basis.
.
When Accrual basis is followed and yearly interest is shown as income, on maturity only 6th yr (last) interest will be taxable.
.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 December 2013
3.TREATMENT OF MUTUAL FUND RECEIPTS GIVEN IN BANK STATEMENT
Please read the answer of Query 4.

4.IS MUTUAL FUND MATURITY VALUE EXEMPT OR NOT FOR THESE POINTS ANSWER TREATMENT AND SECTION
Reply- Mutual funds receipts are subject to tax and generally taxed under the head "Capital Gains" . Section 45 and 48.

Long term capital gain is exempt only when the mutual fund units are of an Equity Oriented Mutual Fund. (Section 10(38)

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