Rahul Sinha (Team Lead) (44 Points)
06 March 2011Say I purchased 10 units of non-liquid equity diversified fund at NAV 10 each of 10th April 2010. I sold all 10 units at Rs 11 each on 1st Dec 2010. My holding period is thus less than a year thus STCG tax will be applicable. Say the exit load was 1% is sold before 365 days.
Purchase price = Rs 100
Sale price = Rs 110
Now my questions: What will be my exit load amount? What will be my STCG tax?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 March 2011
exit load is the expenses towards sales and deductible from the sale proceeds,
from net sales proceeds( after deduction of exit load) u have to deduct the cost of purchase and pay 15% STCG on that value.
STT is a capital expenditure so u can not claim it while computing,
Rahul Sinha
(Team Lead)
(44 Points)
Replied 06 March 2011
I will prefer if somebody gave me numbers :)
Once you start working out the numbers things do not remain as simple ;) and questions get answered like - Do I pay STCG on one hand and exit load on other? After paying both am I really in profit?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 March 2011
STCG is applicable only if you are in profit after the adjustments and its 15% only, so balance 85% remains in your hand only.
sales proceeds - 110
less exit load 1.10
net sales proceeds = 108.90
less purchase cost 100
net stcg 8.90
you have to pay 15% of 8.90 = 1.34
balance with you =7.56
here u did not mentioned the STT portion deducted so the same is not accounted in above
Rahul Sinha
(Team Lead)
(44 Points)
Replied 06 March 2011
Yes STT will apply and surcharge plus education cess will also apply so 15% will become 17%
Nontheless, I got the picture that I needed. Numbers do help a lot. Thanks again!
CAclubindia
