Calculation oof Capital Gain

 

Dear Sirs/Madam  

This quuery is related  to Mutual Fund Redeemption annd  calculation of Capital Gain Tax. 

>   4400 units of Equity scheme of a Mutual Fund was purchased on 15.06.2016 at NAV Rs.12.00.

>     Dividend Received in the years are:   Rs.440, Rs.800 and Rs.1000 in the Financial years -   20017-18;   2018-19 and 2020-21.respectively.

>     The investor has redeemed all the Units (4400) at NAVRs.17.00 on 15.03.2023.

Qn: 1  How to calculate the Capital Gain..

Qn. 2. The exemption limit of Rs. 1,00,000 ( from Capital Gain Tax) applies to all units redeemed in the year or it applies to   each individual redemption.

Thank you.

vsrajaraja

 

 

 

Replies (6)
Quick Summary
This discussion addresses the calculation of capital gains tax on mutual fund redemptions. It outlines a scenario involving purchased equity units, dividends received, and subsequent redemption, posing questions about how to calculate the capital gain and the applicability of the £1,00,000 exemption limit. The conversation also touches upon the significance of NAV on 31.01.2018 and the use of cost indexation for acquisition cost.

1. Based on its NAV as on 31.01.2018.

2. Rs. 1 lakh exemption is out of total LT capital gains in the year u/s. 112A IT act.

The nav value can be easily calculated.

Dear Sirs, Based on the Data given, I wanted the actual calculation of Capaital Gain taking into account the indexation.  This will benefit many students and practitioners. The significance behind the NAV as on 31.01.2018, I could not comprehend.   Can anybody explain.

Thank you.

vsrajaraja

Sale consideration less cost of acquisition

Sri.Mukhrjee,Sir,  Thank you for the reply.   But the issue is how do you arrive at the cost of acquisition, using the cost index, from which period upto which period.   If it is worked out using the Data given, the students can understand clearly.

Sorry for the botheration.

Thank you.

vsrajaraja

Read carefully singhania guide published by Taxman publication,you may understand from that.

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