Sir,
Whether Short Term Capital Gain will be only proportionate of the Total Capital Gain in case of a Non Equity Mutual Fund.Precisely I am placing my question as below.
Let us consider that an investment of Rs Ten Lakhs ie 1000000 has been made in a Non Equity Mutual Fund which eventually has increased to Rs 10.8 Lakhs ie 1080000 after one year and we we want to withdraw the money due to some urgency. Here the capital gain is Rs 80000 which is in fact 7.4% of the total value of Rs 1080000. What will be the amount of Capital Gain for calculation of tax in this case.
If the total gain of Rs 80000 is considered then THERE IS NO DIFFERENCE WITH FD DEPOSIT. BUT IF THE CAPITAL GAIN IS CONSIDERED AS 7.4% OF Rs 80000 THEN A FIGURE OF ONLY Rs 5926 comes into picture and considering a income tax bracket of 30% a tax of only Rs 1831 comes into picture.Whereas if total Rs 80000 is considered the tax comes out to be Rs 24720.
Please intimate whether in this case Capital Gain will be considered as Rs 5926 or Rs 80000.
With thanks
ct
7.4% of the total maturity value of Rs
2 Answers
Hi,
30% of total short term capital gains (Rs 80,000) have to be considered as taxes.
Related Article :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
Hi,
I have gone through the information that you have sent by email, kindly note that in that article, the query is about partial withdrawal and not the entire Rs 10.8 Lakh.
Yes, if one withdraws say the gain of Rs 80k, it is considered as principal + capital gains in the mentioned proportion.
If I have understood correctly ,if I withdraw Rs 80000,then tax will be Rs 1831.but if we withdraw Rs 1080000 the tax will be Rs 24720.Please reply ok,if correctly understood by Mr.
Yes sir, your understanding is correct!
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