Capital gain & loss on mutual fund

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Mugdha

Mugdha (Querist)
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02 July 2012 Dear Experts,

please guide me how to calculate long term& short term capital gain & loss on Mutual fund ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 July 2012 1. Each investment in mutual fund shall be treated individually. For instance in case of SIP, each monthly instalment shall be considered individually and period of holding shall be calculated from the date of individual investment to one day prior to the date of redemption.

2. If the period of holding is 12 months or more, it shall be a long term capital asset otherwise short term capital asset.

3. Long term capital gain arising on redemption of units of equity oriented fund is exempt from tax. Accordingly, long term capital loss has no treatment and is a dead loss.

4. Long term capital gain arising on redemption of other mutual funds is taxable @ 20%.

5. STCG arising on redemption of units of equity oriented mutual fund is taxable @ 15%.

6. STCG arising on redemption of units of other mutual fund is taxable at normal rates.

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