Legal Question in Tax Law in India

Whether Short Term Capital Gain on Mutual Fund will be proportionate of the total gain for computation of income tax.More precisely I am placing my case as follows.An amount of Rs Ten Lakhs ie 1000000 was invested in a Non Equity Mutual Fund.A year later the value of the investment increased to 10.8 Lakhs ie Rs 1080000..Now due to some exigency we want to withdraw this amount.Actually total capital gain in this case is Rs 80000 which is in fact 7.4% of the total value of Rs 1080000.Now for computation of income tax whether total value of Rs 80000 will be considered which will mean IT HAS NO DIFFERENCE WITH BANK FD DEPOSITS.But if only 7.4% of Rs 80000 is considered the value of capital gain will come out to be Rs 5926 which will levy an income tax of Rs 1831 considering highest tax bracket of 30%.But if total value of Rs 80000 is considered it will lead to an income tax figure of Rs 24720.

Please therefore opine what will be the capital gain Rs 5926 or 80000


Asked on 10/13/17, 2:52 am

1 Answer from Attorneys
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Obviously Rs.80,000.Your point of Rs.5,926 is meaningless.

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Answered on 10/13/17, 5:04 am


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