MUMBAI: Can the revenue tax division settle for long-term capital features tax (LTCG) assertion given by the AUM of mutual funds?
– Name withheld on request.
AUM or Asset Under Management is an indicator of a mutual fund’s efficiency and its dimension. It refers back to the whole market worth of the property {that a} mutual fund manages at a given level of time.
Investments in mutual funds are usually managed by asset administration corporations (AMCs). These corporations present a year-end detailed report of the transactions which were entered by an individual together with abstract of the capital acquire or loss incurred by that unitholder. Even although one can depend on the information offered by these fund managers, however calculations carried out by them to reach on the figures of acquire or loss incurred ought to be totally verified earlier than submitting the return of revenue. One should examine whether or not provisions associated to grandfathering, indexation, and so on., have been accurately utilized or not. This apply additionally prevails throughout trade.
The revenue tax division has previously accepted such statements from AMCs for the aim of verification of capital features. Also, at a person stage it will get very tough to keep up the transaction sensible particulars and, therefore, such statements are a dependable supply of data. The information for buy of mutual funds can be captured in kind 26AS on foundation of the information filed by such mutual fund managers with the revenue tax division.
– Answered by Shailesh Kumar, Partner, Nangia & Co LLP. Send you queries to [email protected]
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