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Query of tax treatment of mutual funds, share sale

Tax queries 525 views 1 replies

Dear All,

Could you pl help me with tax treatment of the foll? I fall in the highest tax bracket.

1. Mutual Funds redemption (held for more than a year): Capital gains tax is NIL. Will I have to pay income tax?

2. Shares sale :(held for more than a year) Treatment of both capital gains and income tax

Thanks in advance

Replies (1)

Mutual fund redemption

Capital gain = Redemption money received less indexed cost of aquisition. 

Tax Rate = 20% on capital gain.

Sale of shares:

if equity shares or unit of equity oriented fund is transferred and STT is paid, capital gain is exempt. 

Else calculate capital gain= sale value less brokerage commission less indexed cost of aquisition of shares

Tax rate on capital gain = 20%

You can also calculate capital gain without indexation for unit of mutual fund and listed securities and pay tax on capital gain @ 10%

 


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