Sunday, March 4, 2012

Long Term gains in Debt Mutual Funds - Calculate tax with Cost Inflation Index !

For fellow Indian Investors, who have long term gains with the sale of Debt Mutual Fund Units, you got to pay either 10% of LT Gains (or) 20% of  LT gains post Indexation benefits - whichever is lower as Tax (along with applicable cess, surcharge).

Given the higher inflation range these days, typically 20% of  LT gains post Indexation benefits will be the lower one compared to the other.

To know Cost Inflation Index for the year 2010-11, 2011-12 please refer to the following link

http://taxguru.in/income-tax/cost-inflation-index-meaning-and-index-for-all-the-years.html

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