1. Does the recently introduced LTCG tax on mutual fund , the gain adds to the applicable tax slabs or just 10% tax �irrespective of the tax slabs in which individual lies.
2. What is the taxation rule on NPS tier 2 withdrawals. Does indexation applies to these withdrawals
Investment in NPS Tier II account does not qualify for deduction under section 80CCD. Hence logically the withdrawals would not be taxed, unless there is a gain on withdrawal. In my opinion indexation would be applicable if the asset qualifies as long term capital asset. However let me add that the position of taxation of NPS Tier II withdrawals is still debatable. I have expressed my personal view on this.
Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS
Subodh V Shah CA Subodh V Shah is a Fellow Member of the ICAI. A merit ranker throughout his career, he stood 3rd in CA Intermediate and 17th in CA Final. In addition he also got the prize of ICAI for scoring the highest marks in Direct Taxes at CA Final. He is practicing Chartered Accountant as well as a teacher for over 20 years.
Ameya Kunte Ameya Kunte is a Tax Professional, Chartered Accountant & Co-founder - Taxsutra.com
Nikhil Vadia CISA qualified Nikhil Vadia is a Chartered Accountant in practice since 1997
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