Is Indexation on Sale of Shares to be applied?

Share
Share This Thread
  1. INDIAN

    INDIAN New Member

    This query pertains to reporting Exempt income under : "Long term capital gains from transactions from which STT is paid". So this covers capital gains derived from equity Mutual funds.

    But my query is - should I consider indexation benefit or not when reporting this capital gain?
    - For example : When I consider the long term capital gain without indexation benefit - I have a positive gain. But if I consider indexation, then I actually have a loss.

    Please clarify on what should be reported. Thank you.
     
  2. Piyush Chawla

    Piyush Chawla Active Member

    No, the indexation on sale of shares is not to be applied
     
  3. INDIAN

    INDIAN New Member

    Thanks, Piyush. I assume this is then applicable to equity MF also.

    Another related query - If I switch from a dividend fund scheme to Growth scheme (of the same fund) it is normally treated as a "redemption from dividend fund" and "purchase into the Growth scheme". Though there is no actual payout of the capital gain, there is a notional capital gain in this transaction from the dividend fund scheme. Should this notional capital gain also be declared as an exempt income from long term capital gains?
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Indexation for Pre-2001 Property Income Tax Jan 1, 2018
Capital Gains Indexation Date - is it agreement date, payment date or registration date? Income Tax Oct 9, 2016
INDEXATION CALCULATION - L.T. CAPITAL GAIN Income Tax Jul 2, 2016
Indexation treatement for Long Term Capital Gains Income Tax Jun 22, 2016
Indexation in case of Short Term Capital Gains Income Tax Oct 8, 2015