Hi,
I am an engineer by profession and is new to finance concepts. I need to file ITR and have a query regarding calculation of STCG. Please confirm if my understanding is correct:
Scenario: I made investments and redemptions in an Ultra short term debt fund as follows-
On 05-04-2015, invested 700rs, NAV 10rs, No of units = 70.
On 12-04-2015, invested 2000rs, NAV 11 rs, No of units = 181.8.
On 01-08-2015, redeemed 1500rs, NAV 15rs, No of units = 100.
Calculation of STCG is as follows:
Since I fall in 20% tax bracket, the profit I gain on the transaction will be charged at 20%.
Actual cost of purchase:
Of the 100 units I redeemed, 70 will come from the purchase on 05-04 and the remaining 30 will come from the purchase on 12-04-2015.
The 70 units has a cost price 70*10=700rs and the remaining 30 units has a cost price 30*11= 330. Thus total cost price = 700+330=1030 rs.
Profit on the redemption = 1500-1030 = 470rs.
STCG = 470rs.
Tax to be paid according to tax bracket is 20% of 470 = 54rs.
Please tell if the calculation is correct.
CAclubindia
