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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: JPR who wrote (2667)	9/4/1998 11:18:00 AM
From: Nandu	Read Replies (1) \| Respond to of 12475

Inflation Indexing of capital gains. Just read the most amazing thing. Apparently, in India you can index capital gains by inflation for tax purposes. For example if your long term gain is 100% and the inflation over the same period is 50%, only half your gain is taxable (at the long term gain rate of 20%). The article, at dhan.com explained this in terms of mutual funds (UTI "units"). Not sure if it applies to shares etc. My brother was just complaining the other day that it is not profitable to keep his money in the bank because the govt. takes away a good portion of the interest as income tax. I am going to ask him to consult a CA and think about putting a portion into "units".