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lLTCG SCUP-UTI

uday (cme) (36 Points)

20 June 2009

SENIOR CITIZENS UNIT PLAN OF UTI WAS CLOSED DOWN. I had put in 3600 in 94-95. i got 19000 in 08-09.

will i need to pay Long Term Capital gains tax?

can someone help me?

thanks

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3 Replies

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 20 June 2009

mr. uday

u purchased in a.y. 96-96 for rs. 3600/-

now in a.y. 09-10 recd. 19000/-

so u hav to paid LTCG.

Amounted to rs. 3600/281*582 = 7456

Long term capital gain – 19000-7456 – 11544

U hav to paid tax on 11544/- @ 20% = 2308

Subject to maximum exemption limit.

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uday (cme) (36 Points)
Replied 21 June 2009

thanks.

they are units of a equity oriented mutual fund.so why do i need to pay LTCG tax?

if i have to pay,then

is it not beneficial to pay 10% than 20%(with indexation) ?

uday (cme) (36 Points)
Replied 22 June 2009

dear all,

as per the section below the income need not be taxed!

am i wrong?

[Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds.

115BBB. (1) Where the total income of an assessee includes any income from units of an open-ended equity oriented fund of the Unit Trust of India or of a Mutual Fund, the income-tax payable shall be the aggregate of—

(a) the amount of income-tax calculated on income from units of an open-ended equity oriented fund of the Unit Trust of India or of a Mutual Fund, at the rate of ten per cent; and

(b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a).

(2) Nothing contained in sub-section (1) shall apply in relation to any income from units of an open-ended equity oriented fund of the Unit Trust of India or of the Mutual Fund arising after the 31st day of March, 2003.

Explanation.—For the purposes of this section, the expressions “Mutual Fund”, “open-ended equity oriented fund” and “Unit Trust of India” shall have the meanings respectively assigned to them in the Explanation to section 115T.]