mutual funds and Sec 10(35)

HI FRIENDS.

KINDLY SOLVE THIS.

WHETHER CAPITAL GAINS ON SALE OF MUTUAL FUNDS IS EXEMPT FROM TAX U/S 10(35).

35) any income by way of,—

      (a)  income received in respect of the units of a Mutual Fund specified under clause (23D); or

      (b)  income received in respect of units from the Administrator of the specified undertaking; or

      (c)  income received in respect of units from the specified company:

Provided that this clause shall not apply to any income arising from transfer of units of the Administrator of the specified undertaking or of the specified company or of a mutual fund, as the case may be.

Explanation.—For the purposes of this clause,—

      (a)  “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002)⁷⁸;

            (b)        “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002)⁷⁸;