Mutual fund

This query is : Resolved

Dheeraj Kumar (Querist)
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09 August 2012 Hi,

I have invested in mutual funds.
Units purchased - 123.487
Purchase Rate - 40.49 per unit
Sale Rate - 43.25 per unit
Exit load - 1 percent

Can anyone tell how much money i'll get on redemption.

The mutual fund I invested in is SBI.
Can anyone tell the redemption mode (Cheque or NEFT)

Regards,
Dheeraj.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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11 August 2012 We need to understand how exit load works. Exit load of 1% is charged on the redemption value and as a result the redemption value will become 99% of original redemption value.

So, your purchase price = 40.49 * 123.487 =Rs.4999

Your redemption price = 43.25 (100%-1%) * 123.487 = Rs.5287.40

Your gain = Rs.5287.40 - Rs.4999 = Rs.288.40.

Hope this makes things clear

Dheeraj Kumar

Dheeraj Kumar (Querist)
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11 August 2012 Sir,

Thanks.
But STT is also cut on it & my gain reduced to 274 Rs. I got it sir.
Can you answer 1 more question I purchased it 3 months before, do I have to pay STCG @ 15%, if my income do not exceed minimum taxable limit.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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11 August 2012 Yes, the Securities transaction tax of 0.125% must be paid whenever you buy or sell a MF investment.

we need to add STT to the purchase price and deduct STT from the Selling price. When we consider this i believe you can arrive at Rs.274.

Purchase price becomes Rs.40.54 per unit after you add the STT at 1% to the purchase price. Selling price after exit load is Rs.42.8175 and after you DEDUCT stt from the selling price, you will get Rs.42.76 per unit.

Net payoff = 123.487*(42.76-40.54) which is around Rs.274

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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11 August 2012 No, you need not pay STCG at 15% if your basic exemption is not crossed

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Dheeraj Kumar

Dheeraj Kumar (Querist)
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12 August 2012 Sir, I'm a taxpayer from last 2 years, sir do I need to pay STCG tax & also tell the tax liabilty (as per my calculations Rs. 40)

Thank you so much for the clarifications Sir.

Regards,
Dheeraj.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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12 August 2012 Yes, it comes to around Rs.40...

Dheeraj Kumar

Dheeraj Kumar (Querist)
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12 August 2012 Thank you so much Sir.

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