Yes it is accounted but what I mean is that it doesn’t change how much the underlying shares are worth
But yeah there could be different ways of accounting.
I recommend to check historical data for FLXI vs QDV5
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Wish I had known before. Got redemption and TDS deducted. Talked to CA and have been told that ITO will side with Revenue department no matter what. The point of relief ( i.e. tax refund will happen, if at all) may come at the second level -CIT Appeals or at the third level - ITAT.
I quickly checked and both the India-Switzerland and India-UAE cases went up to ITAT level.
These cases happened some years back
I hope by now, tax office know the law. With two judgements clearly stating this and multiple online forums constantly talk about it (specifically for UAE)
Good luck for your refund. It would be great if you can report back on this thread how did it go. I assume I would be around April or so.
After I read about this drama , I got discouraged about using Indian MFs because I feel at some point a lot of bureaucratic process need to be handled to avail Tax free CGT because it’s not very normal for Indian context that MF investment can be tax free for someone
If more and more such redemptions will happen, the process at tax office might also improve
Having dealt with the Indian tax authorities professionally in the past, I wouldn’t hold out too much hope for this. I’ve had tax cases open for over a decade and gone through appeals and court. I’m convinced their strategy is just to wear you out and out-last you even when they have a losing case.
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In my view, if they don’t want to give an investor the tax benefit then just change the law. What’s the point of law and then make it tough for people to avail benefit
Anyways. For me, I am not counting on the benefit. If I get it , great. Otherwise it’s still slightly better versus FLXI
I’m not sure if it is the case in India, but in the past, some employees in tax offices were incentivised on tax adjustments they made (i.e. paid more when they recovered more taxes) so they aggressively fought against deductions etc. I’ve also seen cases where shortfalls in local budgets led to requests for more tax revenue. One tax inspector in another country even said “I couldn’t find anything wrong with your tax return, but we need 40k more tax. You find where to adjust it appropriately.”
I’m curious, which country was this?
Russia.
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