Long term capital gains on redemption of ELSS units?

POSTED BY Mohan Kishor ON July 16, 2011 10:51 pm COMMENTS (2)

Hi All,

I redeemed around 1000 units of SBI Magnum Tax gain(D) scheme in the month of Mar2011, after the minimum lock-in period of 3 years as per First-in First-out approach. Actually I made loss out of it. The average purchase NAV is Rs. 54.75, sale NAV is Rs. 38.72. I got a total dividends of Rs. 21425/- till date, out of this total dividend amount a sum of Rs.3320/- is the dividend received in the FY2010-11.

my doubts are,

1. How to calculate the Long term capital gains for any mutual fund dividend scheme? (do we have consider the dividends received also along with the sale & purchase NAVs?)

2. As I know, there is no LTCG on equities & MFs if date of sale is longer than one year from purchase. then whether LTCG is profit or loss, will it not make any difference in paying/saving income tax??

3. Shall I have to show this redemption amount in the tax return ITR-2 (Schedule-Exempt Income EI)?

Please clarify my queries…


2 replies on this article “Long term capital gains on redemption of ELSS units?”

  1. Mohan Kishor says:

    Hi manish,

    Thanks for your reply…

    Mohan Kishor

  2. 1. U dont need to consider dividends at all . All you need to see if that if you made some profit from your MF after 1 yr , its LTCG , which is there in your case because the lock in period it self was 3 yrs , in your case you made loss , but now there is nothing called LTCL here ..

    3. You dont need to show the redemption amount in ITR


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