withdrawl from LIC investment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2010 I had made an investment in LIC few years back. Since then the NAV has increased many folds.
I have withdrawn from the fund and have invested in other LIC funds.

Do such withdrawl and subsequent investment attracts tax implication

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 April 2010 withdrawal amount is not taxable.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 April 2010 Any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy or any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund where—

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

(b) such transaction is chargeable to securities transaction tax

will be exempt and not otherwise

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