Hi, I'm planning on meeting family expenditure through MIP mutual funds. So if I invest now and after 1 year I start withdrawing a fixed sum every month will that withdrawal amount be taxable? Any investment in equity after 1 year is tax free right?
Swady (Digital World) (115 Points)
31 May 2017Hi, I'm planning on meeting family expenditure through MIP mutual funds. So if I invest now and after 1 year I start withdrawing a fixed sum every month will that withdrawal amount be taxable? Any investment in equity after 1 year is tax free right?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160292 Points)
Replied 01 June 2017
"Any investment in equity after 1 year is tax free right?"
Right.
So, your systematic (monthly) withdrawal plan, is related to redemption of units/investment in equity/balance fund invested before 12 months............. then no capital gain tax liability.
Swady
(Digital World)
(115 Points)
Replied 01 June 2017
Sir, the monthly withdrawal will be made after completion of 1 yr, that is, from the 13th month I'll systematic withdrawal.. so no tax liability if I invest in equity/balanced fund but for MIP funds?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160292 Points)
Replied 01 June 2017
Originally posted by : Swady | ||
Sir, the monthly withdrawal will be made after completion of 1 yr, that is, from the 13th month I'll systematic withdrawal.. so no tax liability if I invest in equity/balanced fund but for MIP funds? |
MIP are debt funds and are taxable as per period of holding. Any period less than 3 years is treated as short term for calculation of capital gains, that please note.