Are gains from debt mutual funds taxable? If yes, what if I get losses considering indexation?

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  1. Gurman

    Gurman New Member

    I invested in some debt mutual funds. I see long term capital gains without considering indexation, but I see losses considering indexation. I am not able to figure out where to specify it in ITR-2 form. Somebody told me debut mutual funds are investments in debentures or bonds, so I should mention the consideration and cost of acquisition etc. under "From sale of bonds or debenture (other than capital indexed bonds issued by Government)" in the CG sheet. But if I do that, it does not consider indexation and the gain (without indexation) is added to my taxable income.
    Are debt mutual funds not allowed to consider indexation? If yes, any losses considering that, how can they be set-off. I cannot set-off them against gains from equity mutual funds, which are exempted from taxation under section 10. Any advice?

    thanks
     
  2. Gurman

    Gurman New Member

    Hi,

    Any advice?

    I am planning to put debt mutual details - FVC, CAWI, under B7 "From sale of assets where B1 to B6 above are not applicable" in sheet CG. That shows me a capital loss, which I am putting under E - "Set-off of current year capital losses with current year capital gains" in the same sheet, under SL-i-M which is
    Loss to be set off (Fill this row if figure computed is negative)
    ------>
    Long term capital loss set off
    But since there are no gains in current year, it fills the CFL-Sl-xi
    2014-15 (Current
    year losses)
    and to be carried forward.

    Can anyone advice if it is correct?

    thanks
     
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