1

Let's say (in India):

Ravi's father bought units of an MF on 01-Jan-2011

Ravi's father passed away on 01-Jun-2015

The inherited units were credited (transmitted) to Ravi's account on 01-Feb-2017

Ravi sells the units on 01-May-2017.

Now, for determining capital gains for Ravi, which of the above is the acquisition date?

3

Now, for determining capital gains for Ravi, which of the above is the acquisition date?

For determining Capital gains, the date is 01-Jan-2011 and the cost is what Ravi's father paid.

i.e. the cost and the basis is transferred to Ravi.

If this is for 2017, there is no tax as long term capital gains are NIL.

Till 31st Jan 2018, there was no tax applicable on capital gains. However there is capital gains of 10% and the basis of cost is to be considered as the value of fund on 31-Jan-2018.

So Ravi needs to pay for gains in value from 31-Jan-2018 to 1-may-2018

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.