I had invested ₹30,30,000 in ICICI Pru Balance Fund – Regular Plan Monthly Dividend Fund in 2017. I acquired month-to-month dividends repeatedly, the quantity lowering as per market circumstances. Since this was straight credited to my financial savings account I foolishly didn’t attempt to discover out its NAV. From Apr 2020 (FY 20-21) dividends stopped being credited. When I found that worth had drastically decreased, I redeemed your complete holding on 29 May 2020 for ₹21,04,000. Thus I suffered a loss of ₹9,26,280. I didn’t obtain any dividend from this fund in FY 20-21. For submitting returns this 12 months, while dividends will type a part of revenue, how do I deal with the loss (principal quantity). Can I enter in schedule CFL particulars of losses to be carried ahead in future years of ITR-2? Can a part of the loss or entire (if relevant) be offset against revenue within the present 12 months while computing last tax payable?
– Name withheld on request
ICICI Prudential Balanced Fund is an equity-oriented hybrid fund and the tax remedy would be just like that of an fairness fund. In your case, because you had invested within the 12 months 2017, the loss will be labeled as long run capital loss. As per the availability beneath Income Tax Act, the Long Term Capital Loss can be set off only against Long Term Capital Gains. Hence, you can set off this loss only against long run achieve within the earlier 12 months.
However, in case you wouldn’t have long run gains you then can carry ahead this capital loss as much as 8 years. To know the precise quantity of Long Term Capital Loss, you could request a capital achieve assertion from ICICI Prudential AMC as there’ll be an impression of grandfathered Net Asset Value (NAV as of 31 Jan 2018), which was launched together with long run capital achieve tax on equity-oriented mutual fund investments within the 12 months 2018.
You can additional seek the advice of together with your chartered accountant or tax guide on this matter for higher clarification.
– Harshad Chetanwala, founder, Mywealthgrowth.com
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