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Mutual fund

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Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 Hi
I invested in mutual fund and it is in loss so i plan to withdraw it. What will be the Income tax treatment in case it is held for i)few months, ii) for over 2 yrs and iii) over 3 1/2 years.
Kindly help
Thanks

CMA Gul S

CMA Gul S (Expert)
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06 June 2013 When a shareholder sells mutual fund shares, he or she will have a capital gain or loss in the year the shares are sold. The shareholder is liable for tax on any capital gains arising from the sale, just as the shareholder would be if he or she sold individual securities. Capital losses may be used to offset other gains in the current year and thereafter.

An exchange of shares from one fund to another in the same fund family is taxed the same as if the shareholder sold the first fund’s shares and purchased new shares in the second fund with the proceeds.

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