yogesh sheth (director) (94 Points)
25 May 2011Dear Experts,
I have reedemmed my mutual fund holding in 2010-2011 which I have purchased in NFO and holded the same for more than 3 years. Kindly inform me that the difference of money I have earned between my purchase price and sale price is taxable or not. If taxable under what head and if not kindly let me know the exemption section.
Regards,
YOGESH SHETH
Saurabh Aggarwal
(Chartered Accountant)
(371 Points)
Replied 25 May 2011
Taxability shall depend upon the levy of Securities Transaction Tax i.e. STT.
If it has been paid on redemption than the Longterm Capital Gains(LTCG) shall be exempt u/s 10(38) of Act. Otherwise they shall be taxable.
In 99% of the cases STT is deducted and LTCG are exempt. Now proceed acordingly
Thanks & Regards
Harpreet
(* * * * * *)
(1670 Points)
Replied 25 May 2011
If you have invested lumsump amount in mutual fund before 2-3 years and STT was paid by the Assest Management Company then there is no tax liability will arise. Tax liability will be on units which comes under short term tenure, The same covers under Capital Gain (Short Term or Long Term)
CAclubindia
