POSTED BY September 18, 2013 9:47 pm COMMENTS (3)
ONIf I buy a share and sell it after 13 months at a profit-what is the income tax I would be subjected to assuming I am in the 30% bracket?
Also, in case of an equity mutual fund, if I invest for 13 months through SIP & then redeem the entire amount, how is the treatment of income tax?
Thanks
2021 © Jagoinvestor.com All Right Reserved
Dear Dipesh, if the transactions are losses, LTCL should be ignored as LTCG are tax free. STCL can be adjusted against other STCG & if no or less STCG is there, the residual STCL can be carried fwd to next 8 FY to be adjusted by filing Income Tax Return & reporting your losses. Please do note to claim carry over your losses, the ITR must be filed before due date.
thanks
Ashal
Hi Ashal,
In case transaction has led to loss then what is the scenario, can we claim it during tax filing.
Thanks
Dear Itsvibhor, the shares sold in exchange after 13 months holding ‘ll be tax free.
In case of Eq. MFs, only those units which have completed 1Y of holding in your SIP (normally first 2 months out of your 13 SIPs) ‘ll be tax free. Remaining Units of less than 1Y holding ‘ll be taxable @ 15.45% rate.
Here I’m assuming all the above transaction are generating profit to you. 🙂
thanks
Ashal