Tax liability on gold fund

POSTED BY Dr Ramesh Prasad ON June 20, 2013 12:55 am COMMENTS (2)

Sir,

I had had redemption of Rs one lakh –after one year of investment– from Reliance Gold Savings Fund in January,2013.

Please advise about tax liability on the redemption amount.

Thanking you,

R.Prasad

2 replies on this article “Tax liability on gold fund”

  1. Free Financial Calculators says:
    June 20, 2013 at 5:45 am

    It is 20.6% with indexation. This gives more details

    http://www.fundsindia.com/blog/mutual-funds/make-use-of-indexation-benefit-for-debt-funds/1971

    Reply
  2. Free Financial Calculators says:
    June 20, 2013 at 5:44 am

    If you had made a single lumpsum investment 365 days ago then the gains you have got is termed as long term capital gains. You will need to pay 10.3% tax on this gain.

    OR you can also use indexation benefit (if applicable) and instead pay 20.3% tax if it is lower than 10.3% tax. You will need the cost inflation index for this. Best to consult a CA reg. this

    If some of your investments are less than an yer old then the gains will be termed short term capital gains. You need to declare these gains as income and pay tax as per your slab.

    The AMC website will give you the long or short term gain details

    Reply

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