18 February 2013
I have invested in 'HDFC Monthly Income Plan-LTP-Dividend Month' & 'Reliance Monthly Income Plan'. The question is whether the indexation will be allowed or not at time of sale as they are debt funds??
(As per 3rd proviso to Section 48 debentures & bonds are not allowed for indexation but as per proviso to Section 112 we can index listed securities & the definition of securities include shares , stocks, bonds,debentures, debenture stock,etc) Another point is the above told plan are debt funds but not classifying whether they are bonds or debentures or not ??
Can u provide me the full explanation of thinking that indexation should be given because if the Income Tax Department ask the reason then what will be my reply i.e. as per which section i should appeal that indexation will be allowed ??
CAclubindia
