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Income from ells fund

11 June 2019

Dear Sir / Madam,

I have invested Rs. 60,000 in Reliance Equity Linked Savings Funds (6000 Units) on 31.03.2008. It got matured on 02.04.2018 (after 10 years) and received redemption amount of Rs. 1,92,492. (N.A.V. on 31.03.2008 is Rs.10.00 Per Unit, N.A.V. on 31.01.2018 is Rs. 35.4202 Per Unit & N.A.V. on 02.04.2018 is Rs. 32.082). I would like to know how & Where these amount to be shown in my INCOME TAX RETURNS for the AY 2019-20 (i.e. FY 2018-19). Is it come under Long Term Capital Gain? If yes, Whether Tax Payable or Not? Or I can show it as EXEMPT Income mentioning as "Gain from Redemption of ELSS Fund". Please advise. Thanks in Advance. SUDHARSAN

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185054 Points)
Replied 12 June 2019

Fill column 4 of Schedule CG in ITR2 (or ITR3)

In this particular case, LTCG is NIL, hance no CG tax liability.

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N.s. Sudharsan (35 Points)
Replied 12 June 2019

Dear Sir,

Thanks for your reply. I need to file ITR-3. Schedule CG Table 4 seeks details as below.

i) From sale of, (i) listed securities (other than a unit) or zero coupon bonds where proviso under section 112(1) is applicable

ii) From sale of GDR of an Indian company referred in sec. 115ACA

a) Full value of Consideration

b) Deductions Under Section 48 (Cost of acquisition without Indexation, Cost of Improvement without Indexation, Expenditure wholly and exclusively in connection with transfer)

c) Deductions under section 54F

If you guide me the appropriate values to be mentioned on it, It would be very helpful for me to finalize my ITR.

Thanks and Regards

Sudharsan.N.S.

N.s. Sudharsan (35 Points)
Replied 14 June 2019

Dear Mr. Dhirajlal Rambhia,

Please help me and guide to fill Schedule CG in my ITR-3

Thanks and Regards, Sudharsan.N.S.

N.s. Sudharsan (35 Points)
Replied 14 June 2019

Dear Mr. Dhirajlal Rambhia,

Please help me and guide to fill Schedule CG in my ITR-3

Thanks and Regards, Sudharsan.N.S.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185054 Points)
Replied 15 June 2019


	i) From sale of, (i) listed securities (other than a unit) or zero coupon bonds where proviso under section 112(1) is applicable ii) From sale of GDR of an Indian company referred in sec. 115ACA a) Full value of Consideration ...... total redemption amounts b) Deductions Under Section 48 (Cost of acquisition without Indexation, Cost of Improvement without Indexation, Expenditure wholly and exclusively in connection with transfer) ....... generally NIL .... ZERO c) Deductions under section 54F .... As such not applicable in your case ... so, Zero.

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N.s. Sudharsan (35 Points)
Replied 19 June 2019

Dear Mr. Dhirajlal Rambhia,

Thanks for you reply.

For Cost of Acquisition Without Indexation, I hope Redemption Value should be mentioned as it is Higher than Purchase Value and Lesser than Grandfathered Value as on 31.01.2018, So that it appears as NO CAPITAL GAINS from the transaction. If in case Grandfathered Value is lesser than the Redemption Value, then Grandfathered value should be treated as Cost of Acquisition and CG @ 10% needs to be paid for difference amounts (Redemption Value - Grandfather Value).

N.s. Sudharsan (35 Points)
Replied 19 June 2019

Dear Sir,

I just found that Sale (Redemption) of Mutual Fund Unit should be filled under Table-5 (From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A ), Where there is provision to mention Cost of Acquisition, Grand Fathered Value (Fair Market value) as on 31.01.2018, etc (for units purchased before 01.02.2018).

Dineshchandan (articled assistant) (84 Points)
Replied 19 June 2019

Hello Sudharsan, I would suggest you to go a practicing CA for filing your IT return. Per conversation above, it seems you are quite confused about the terminology and the procedure for computing your taxable income. It is not advisable to file a return without proper understanding of the provisions of the act. Please visit a CA which would save time and avoid tax litigation as well.

N.s. Sudharsan (35 Points)
Replied 27 June 2019

OK sir, Noted contents of your reply. Anyhow, i have filed my return for the AY 2019-20. In future, if any such confusions, i will approach Practicing CA for filing my IT Returns.