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Long Term Capital Gain from sale of Mutual Funds

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R Gopalakrishna Pillai

finance consultant

75 Points Posted on 28 July 2024

Sir,

What are pre-conditions for claiming exemption from Long term capital gain on Sale of Mutual Funds.

Please clarify whether one has to reivest the entire sale proceeds to claim exemption.

Can we claim exemption up to Rs.100000/- with out further investments. if so, under which section.

Please reply at the earliest.

Thanks & regards,

Gopalakrishna Pillai

Replies (5)

Quick Summary

This discussion clarifies the rules for claiming exemptions on long-term capital gains (LTCG) from selling mutual funds. It addresses whether the entire sale proceeds must be reinvested to claim exemption, particularly concerning the Rs. 1 lakh exemption limit under Section 112A of the Income Tax Act.