MF Investors Also Provided With LTCG Statement

The Budget 2018 has once again re-instated the withdrawn LTCG tax of 10% on capital gains made on direct equity and equity mutual funds over and above Rs. 1 lakh in a financial year. While the said move is unlikely to hit retail investors much but shall be a big deterrent for HNI class.

And as the calculation per se LTCG or long-term capital gains is not a simple exercise with the grandfathering rescue, some of the registrar and transfer agents of mutual funds including CAMS are also providing the LTCG statement.

So, to make the task of mutual fund investors easy, where you need to account for the NAV value on January 31, 2018 to ascertain your gains after that for the tax implication as well as other values such as the lower of the value on January 31 or the sale price.
The registrar and transfer agents so beginning last week are said to provide other than the usual NAV and net value of the mutual fund statement i.e a basic valuation statement; are coming up with the second statement.

This second statement ascertains the gains or losses made by you after you sell your units in mutual funds. The grandfathering clause is also taken into consideration plus it also highlights which gains do not attract taxation liability or are tax-exempt.

Currently the statement is being provided in respect of only CAMS-serviced funds and investors through it can understand their tax liability if any.

Other R&T agents including KARVY are likely to follow CAMS in giving out such statements to investors.

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