Capital Gains

Dear Sonia,

1) I think Investment in Gold Deposit bonds or such Mutual Funds IS NOT ELIGIBLE u/s 80 C

2) SALE OF SUCH BONDS/ MUTUAL FUNDS WILL ATTRACT CAPITAL GAINS EXCEPT GOLD DEPOSIT BONDS ISSUED UNDER FOLLOWING SCHEMES

A) 6½ per cent Gold Bonds, 1977,⁴⁹[or 7 per cent Gold Bonds, 1980,] ⁵⁰[or National Defence Gold Bonds, 1980,] issued by the Central Government ;]

B) Special Bearer Bonds, 1991, issued by the Central Government ;]

C) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government ;]

1 ) Hi sonia, there is no deduction available u's 80 C for such investment, 80 C allows :

• Investment in pension Plans
• Investment in Equity Linked Savings schemes (ELSS) of mutual funds
• Investment in specified government infrastructure bonds
• Investment in National Savings Cerificates (interest of past NSCs is reinvested every year and can be added to the Section 80 limit)...

2) Moreover, for ur second Q, i think yes the gold bonds are generally taxed (as list stated by amir)... But i think the second option, i.e GOLD EXCHANGE-TRADE MUTUAL FUNDS, are definately taxed...

Well Dear the best way to know whether particular investment is eligible for 80C is to refer SID( Information document) i dont think eligible for 80C

Dear sonia varma,

1) as per section 80 c clause xiii investment in mututal funds is covered. so, deduction may be allowed.

2) gains arising from transfer of mutual funds is exempt u/s 10 (35)

plz read along with section 10 23D

 Dear Machender,

                                Does'nt 10(35) deal with income from mutual fund..its 10(38) which deals with capital gains arising from equity mutual fund 

Ms. Sonia Varma,

In my view,

(1) Deduction under Sec 80C would not be available since there is no lock in period of 3 years in case of MF except ELSS linked MF.

(2) In respect of Capital Gain, If you sale before 1 year from the date of purchse ,short term capital gain tax will attract. LTCG [holding more than 1 year] is exempt for MF/Bond.

I tnk special gold bonds issued by govt is not taxable as CG

yes,, its true...... Investment in Gold Deposit bonds or such Mutual Funds IS NOT ELIGIBLE u/s 80 C and SALE OF SUCH BONDS/ MUTUAL FUNDS WILL NOT ATTRACT TO CAPITAL GAIN TAX........