SIP Investment taxable as capital gain or not
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 February 2011
my client investment in monthly SIP plan.Amount of Rs. 5000/- deduct monthly in saving bank account by ECS. how can treat its a long term capital gain or short term capital gain.pls reply as brief notes.
thanks
amit kumar agarwal
Tax Consultants
thanks
amit kumar agarwal
Tax Consultants
CA PARAS BAFNA
(Expert)
07 February 2011
Investment made within one year from maturity will be taken as Short Term and
Investment prior to 1 year of maturity will be treated as long term investment.
Accordingly Capital gains will be calculated.
Suppose SIP is for 5 years. Total Rs.300000/
will be invested.In the last year amount paid is 20% of the total investment.
On maturity Amt Recd is Say Rs 400000/
It will be deemed that 20% consideration has been received towards the last year's investment.
Investment prior to 1 year of maturity will be treated as long term investment.
Accordingly Capital gains will be calculated.
Suppose SIP is for 5 years. Total Rs.300000/
will be invested.In the last year amount paid is 20% of the total investment.
On maturity Amt Recd is Say Rs 400000/
It will be deemed that 20% consideration has been received towards the last year's investment.
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