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Calculation oof Capital Gain

vsraj (administration) (135 Points)

05 July 2023

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

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160963 Points)
Replied 05 July 2023

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.

1 Like

sabyasachi mukherjee (26265 Points)
Replied 06 July 2023

The nav value can be easily calculated.

vsraj (administration) (135 Points)
Replied 06 July 2023

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

sabyasachi mukherjee (26265 Points)
Replied 06 July 2023

Sale consideration less cost of acquisition

vsraj (administration) (135 Points)
Replied 06 July 2023

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