Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Indexation term is associated with capital gain taxes. Double indexation is nothing but taking the indexation benefit of 2 financial years in one go. In simple terms indexation means adjusting the cost of capital asset (like Mutual funds) with inflation index numbers as per the Cost Inflation index figures announced every financial year. The Indian income tax law has allowed capital Assets to be indexed for calculating long term capital gain tax. Your period of holding of capital assets decides the long and short term status of your investments. For e.g. Physical gold and Real estate gets the long term status when the period of holding of asset is more than 3 years (36 Months), whereas financial capital assets like Mutual funds, shares, bonds becomes long term after the holding period of more than 1 year ( 12 months).
Indexation is something which is related specifically to financial year (April- March). If an asset is sold after completing the tenure required to gain Long term status as mentioned above, then to calculate the indexed cost of investment, the completion of different financial years also taken into account. Let’s understand this concept with an example.
Date of Investment in debt mutual fund: 1/1/2012 (FY 2012-13)
Completion of one year (12 months): 31/12/2012
If the investor sell out the above mentioned investment after 31/12/2012 and before 1/4/2013, then he can take advantage of indexation , but if he sell out after 1/4/2013 then he can enjoy double indexation benefit as investment holding has now entered in next financial year ( FY 2013-14).
Lets have a detailed example:
Mr A has invested Rs 100000 in a Fixed maturity Plan on 1/1/2012, which will mature on 15/4/2013 with an expected return of 9% p.a. Now technically the holding period is 1 year 3months and 14 days, but as the holding has crossed 2 financial year, so investment will be indexed 2 times and thus double indexation will be applied here.
Cost (Rs) – Rs 1,00,000 (1/1/2012)
CII (Cost Inflation figure) FY 2011-12 – 785
CII (Cost Inflation figure) FY 2013-14 –939
Indexed cost of investment would be : Rs 1,19,617 ( Rs 1,00,000/785*(939))
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
2. Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
No comments:
Post a Comment