Capital gains for mf schemes getting merged

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Abhishek Tuteja (Querist)
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02 August 2019 Hi All,

Need some clarification on below scenario.

I had made investments in Sundaram GILT Fund. It was merged into Sundaram Corp fund last year and the new entity was named Sundaram Corp fund. Here is the notification - https://www.sundarammutual.com/pdf2/2018/Addenda/Notice_cum_Addendum_Merger_of_Sundaram_Gilt_Fund_with_Sundaram_Corpor.pdf

The Capital Gains statement I received from Sundaram MF shows the units in Sundaram Gilt fund as being redeemed at the point and all the gain is shown as LTCG. Is this correct way of showing this for IT returns? My understanding is that since it is merger at the MF end, it will not be treated as redemption and purchase and net capital gain due to this will be 0. Can you pls provide some guidance?

Also, I sold some units post the merger. The statement I received shows the gain there as Short term capital gain by assuming the switch in price when merger happened as purchase price. This, again, I believe is wrong. I believe I would need to calculate the LTCG based on my original purchase and looking at the units which got redeemed now and calculating the difference as LTCG.

Pls advise on these and if there is a standard way provided to calculate tax in such cases, pls point me to that - will be highly appreciated.

Regards
Abhishek

Abhishek Tuteja

Abhishek Tuteja (Querist)
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07 August 2019 Hello Experts,

Any thoughts on this query.

Regards
Abhishek

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