Maturity amount on equtiy linked savings fund - mutual fund

Tax planning 81 views 2 replies

N.s. Sudharsan

35 Points Joined July 2018

On 31st March 2008, I have invested Rs.30000 + Rs.30000 (Total Rs.60000/-) in Reliance Equity Linked Saving Funds which had Lock-in Period of 3 years to avail Tax Benefit.

On 02nd April 2018 (after 10 years) it got matrured and amount of Rs. 96245.04 + 96245.04 (Rs.192490.04) credited to my bank account.

Investet Amount = Rs.60,000/- Maturity Amount Rs. 192490 Capital Gain Rs. 132490

I would like to know whether the maturity/Gain amount is taxable under Capital Gain or not. If taxable, please let me know Income Tax Rate for the same. If Taxbale, Can we get exemption by reinvesting the amount into any Tax Savings Fund in the FY 2018-19?

Kindly suggest.

Replies (2)

N.s. Sudharsan

35 Points Joined July 2018

Dear Expert, Could you please reply to my query?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

196676 Points Joined July 2016

Reliance equity Savings Fund

Asset Allocation Pattern:

Under normal circumstances, the anticipated asset allocation would be: Equities and equity related instruments: 65 – 90% of which: - Derivatives including index futures, stock futures, index options, & stock options, etc. backed by underlying equity (only arbitrage opportunities)*: 25 -70%, Unhedged Equity Position#: 20 -40%, Debt and Money market instruments** (including investments in securitized debt & margin for derivatives): 10 – 35% When adequate arbitrage opportunities are not available in the Derivative and Equity markets, the anticipated alternate asset allocation on defensive considerations would be: Equities and equity related instruments: 20 – 65%

If the fund had the similar pattern of investment.......

Then gains are totally tax-exempt u/s. 10(38) of IT act.....