CBDT Circular about capital gains- suitable amendment is desirable A liberal circular about exemption from capital gains on extension of term of units in any Fixed Maturity Plans (FMPs) of mutual funds – binding on AO but seems to be beyond authority of CBDT- amendment in Income-tax Act or Income-tax Rules is desirable https://www.taxtmi.com/article/detailed?id=6293 The CBDT circular treats rollover or extension of units in Fixed Maturity Plans as not constituting a transfer, so no capital gains arise at the time of rollover and gains arise only on redemption or opting out; however, the author contends the circular, while beneficial and binding on assessing officers, may exceed CBDT's statutory authority and recommends either an explicit amendment to list rollovers as non transfer events or promulgation of rules under the holding period aggregation provision to formalise the exemption. en-us Wed, 03 Jun 2015 06:06:21 +0530 Wed, 03 Jun 2015 06:06:21 +0530 TaxTMI RSS Generator CBDT Circular about capital gains- suitable amendment is desirable A liberal circular about exemption from capital gains on extension of term of units in any Fixed Maturity Plans (FMPs) of mutual funds – binding on AO but seems to be beyond authority of CBDT- amendment in Income-tax Act or Income-tax Rules is desirable https://www.taxtmi.com/article/detailed?id=6293 The CBDT circular treats rollover or extension of units in Fixed Maturity Plans as not constituting a transfer, so no capital gains arise at the time of rollover and gains arise only on redemption or opting out; however, the author contends the circular, while beneficial and binding on assessing officers, may exceed CBDT's statutory authority and recommends either an explicit amendment to list rollovers as non transfer events or promulgation of rules under the holding period aggregation provision to formalise the exemption. Articles Income Tax Wed, 03 Jun 2015 06:06:21 +0530 https://www.taxtmi.com/article/detailed?id=6293