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
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%
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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