Capital gains tax

Income from MF is exempt u/s 10(35) of IT act. Since the Income is exempt, any loss incurred thereby cannot be claimed as per Sec 14A of IT Act.

apart from tat, the MF owned is a Tax saver MF, which has a lock in period too.. so any dividend claimed from it would have been exempt in tat yr..

So in my view, he cannot set off the loss..

Dear Sudha,

1) There seems to be some error.Sundaram Tax Saver Fund is an ELSS Fund and hence would have a compulsory lock-in period of 3 years from the date of purchase.Thus the units purchased by your friend in this Scheme could have been redeemed only on or after 24.4.2011.How did he redeem the units on 12.2.2011?

2) In any case the loss arising on the sale of an equity-oriented Fund(on which STT is paid) has to be ignored and cannot be off-set against any other income.

Originally posted by : sudha
	my friend had purchaed sundram tax saver mutual funds for rs.20000 on 24.4.2008 but redeemed for rs.12052 on 12.2.2011, incurring a loss of rs.7947. his only source of income is his pension income. can theloss be adj against his pension income?

check the redemption statement carefully, there may be TDS due to 80C lock break. 

except tax portion the balance would not be claimed as loss.

agree with Balaji and U S Sharma

yup true

some problem with the date

cheers