Tax Credit u/s 62

Information Consultant · 08-31-2010, 06:50 AM

Dear forum member

Can i claim tax credit on my current year investment in open end mutual fund .total amnt of investment is rs 700000.

If yes than how can i show this amnt in my salaries tax return

mirfawad · 08-31-2010, 05:15 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Information Consultant
 Dear forum member

Can i claim tax credit on my current year investment in open end mutual fund .total amnt of investment is rs 700000.

If yes than how can i show this amnt in my salaries tax return

No, you cannot claim credit of invetment made in open end mutual funds.

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Information Consultant · 08-31-2010, 05:31 PM

Fawad pls elobrate it .. isnt this investment fall u/s 62.
bcz it is an open end fund thatswhy we cant claim.?

or any other reason

mirfawad · 09-02-2010, 05:19 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Information Consultant
 Fawad pls elobrate it .. isnt this investment fall u/s 62.
bcz it is an open end fund thatswhy we cant claim.?

or any other reason

<hr height="1" noshade id="quote"></blockquote id="quote">

yes you are right as it is a fund therefore tax credit cannot be claimed.

The mechanism of a fund is that a company creates a fund and get it registered. the company invites Public to invest in fund i.e company collects money from people in that fund. after that, fund invests in different securities and financial instruments which gives income to the fund and then that is ditributed to the persons who have invested in these funds.

When you say that you have made investment in mutual fund then that means you have purchased the sahres of a Fund. Whereas the section 62 says tax credit for investment in the shares of a listed company. therefore no tax credit for investment in mutual funds.

Further, previously there was exemption for income from open ended mutual funds in second schedule. now i think the same has been withdrawn as the same has become taxable under the head Capital Gains in Section 37.

I think this will satisfy your query. if you have any further questions then kindly inform me.

if you get some other or better information regarding this topic then kindly share that ith me.

Information Consultant · 09-03-2010, 04:54 AM

thanks