Tax on switchover from one scheme of MF to another

CA Paresh Kothari (Service) (233 Points)

29 December 2007  

 

Dear All,

Here is one interesting case.

Suppose X has invested in A scheme of Mutual Fund, later on he has switched over from that scheme to another within one year. Whether there will be any short term gain arising out of such switchover, as in case of MF statement it shows redemption from one scheme and STT is accordingly charged. So whether ST Capital gain arises or not?

 

My initial view is no.

Views from all the experts is awaited.

 

regards,

 

Paresh