SIP Investment taxable as capital gain or not

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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

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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.

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