Here is a crucial question on taxation upon selling of the units.
Those, who have read and understood well, the finance bill amendment, this is your chance to answer.
Question is – when an investor sells the units, is the RoC/SPV repayment distributed from the time of IPO or RoC distributed, when the investor was holding duration has to be added back? if it is the former, it is really tedious and will get more complicated with time; on the other hand, if it is the later, at least some statements coming during the quarter can be kept and tracked. Knowing the nature of these sadistic sleuths, I am afraid that it will be the former but asking the question.
Let us take a more specific case On the Ex date of Embassy Q4 dividend (4th May). Say, I buy at 318 and sell at 321, next day ….do I pay tax on 3 (321-318) rupees + RoC from time immemorial? that does not make any sense at all? I have never enjoyed any RoC by keeping this in 1 day….why should I pay for all the past sins?
Similarly, I keep the same units till the next Q1 distribution and sell after the ex-date for the same 321. Do I pay cap gains on the (321-318)=3+RoC for Q1 or RoC since the time of the IPO. A few people I asked have pointed to the later and it does not make sense but wanted to ask
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