Mr. Sarthak is a resident in India aged 58 years. He had an impressive investment portfolio in various mutual funds. He redeemed his entire mutual…

Computation of capital gains of Mr. Sarthak for A.Y. 2024-25 Particulars Particulars ₹ Redemption of SLR growth fund Full value of consideration [Redemption value] 1,40,00,000 Less: Indexed cost of acquisition [1,20,00,000 × 348/301] 1,38,73,754 Long term capital gains [Since it is debt fund (as not more than 65% of the proceeds are invested in equity shares of domestic companies) and it was held by Mr. Sarthak for more than 36 months immediately preceding the date of its transfer] 1,26,246 Redemption of XYZ Strategic fund Full value of consideration [Redemption value] 50,00,000 Less: Cost of acquisition 46,00,000 Short term capital gains [Since it is a specified mutual fund (as not more than 35% of its proceeds are invested in equity shares of domestic companies) which is acquired on or after 1.4.2023, this fund would be considered as short-term capital asset as per section 50AA irrespective of the period of holding] 4,00,000 Redemption of MNO Midcap fund Full value of consideration [Redemption value] 1,18,00,000 Less: Cost of acquisition 1,15,00,000 Short term capital gains [Since it is equity-oriented fund (as more than 65% of its proceeds are invested in equity shares of domestic companies) and it was held by Mr. Sarthak for not more than 12 months immediately preceding the date of its transfer] 3,00,000 Redemption of TBA Growth fund Full value of consideration [Redemption value] 1,20,00,000 Less: Cost of acquisition [Indexation benefit would not be available in case of income taxable under section 112A] 1,10,00,000 Long term capital gains [Since it is equity-oriented fund (as more than 65% of its proceeds are invested in equity shares of domestic companies) and it was held by Mr. Sarthak for more than 12 months immediately preceding the date of its transfer] 10,00,000 18,26,246 Less: Exemption under section 54F Capital gain arising on transfer of a long-term capital asset other than a residential house shall not be chargeable to tax to the extent such capital gain is invested in the purchase of one residential house property in India within one year before or two years after the date of transfer of original asset. Therefore, in the present case, the exemption would be available only in respect of long-term capital gains from redemption of SLR growth fund and TBA Growth fund. Exemption from long term capital gains from redemption of TBA Growth fund [10,00,000 x 1,20,00,000 /1,20,00,000] Exemption from long term capital gains from redemption of SLR short term fund [1,26,246 x 80,00,000 (2 crores – 1.20 crores)/1,40,00,000] 10,00,000 72,141 Capital gains chargeable to tax for A.Y.2024-25 7,54,105