Query : long term capital gain

This query is : Resolved

Ravi Mittal (Querist)
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19 August 2013 I had invested Rs 10000 in 1000 units of UTI CCP scholarship plan in Oct 2000.And as per the provision of the said scheme the redemption proceeds
is payable to the beneficiary after completion of 18 years of age in 4 instalments(1 instalment every year).
I want to know in the above case how it will be treated for the calculation of the long term capital gain tax and what will be the capital gain tax rate in the above case
i.e. whether it will be 20 %,10 %,or 0% and if it can be assumed that security transaction tax is paid by UTI in the above case.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 August 2013 Information as per the Brochure -
.
Any long term capital gain arising on redemption of units by residents is subject to treatment indicated under Section 48 and 112 of the Income Tax Act, 1961. Long term capital gains in respect of units held for more than 12 months is chargeable to tax @ 20% after factoring the benefit of cost inflation index
.
or tax @10% and the surcharge thereon without indexation.
.

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