If I purchased some units of mutual fund and such mutual fund invest in equity as well as in debt securities. Thereafter I sold them then how to compute Capital gain tax thereon.
Kush bansal (Job) (24 Points)
28 June 2016If I purchased some units of mutual fund and such mutual fund invest in equity as well as in debt securities. Thereafter I sold them then how to compute Capital gain tax thereon.
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 29 June 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 29 June 2016
If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.
and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.
But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.
than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A
hope it helps you
CA shanky pahoja
(accountant)
(615 Points)
Replied 29 June 2016
If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.
and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.
But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.
than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A
hope it helps you
CA shanky pahoja
(accountant)
(615 Points)
Replied 29 June 2016
If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.
and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.
But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.
than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A
hope it helps you
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 30 June 2016
Any income of a mutual fund registered under the SEBI Act, 1992 is exempt from income tax under Section 10 (23D) of the Income Tax Act, 1961. Thus, any income generated by the fund through investments, either in the form of capital gains (short term or long term), dividends or interest is exempt from income tax.
Nikhil Mehta
(NA)
(244 Points)
Replied 14 July 2016
@ mohammad rasool baig:
It is only income of MF, which is exempt u/s 10(23D). On transfer of MF unit, it will attract either STCG or LTCG. So computation of holding period is needed.
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