Mutual funds

This query is : Resolved

Joshi Apexa Bhaveshbhai (Querist)
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23 July 2013 Dear Sir,

Equity oriented mutual funds are subject to STT & Debt oriented are subject to normal rate of tax.

Is this correct???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 July 2013 50-50 correct & 50-50 incorrect.
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Income tax is levied on equity oriented units also-when sold within 1 year.
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If held for more than 12 months, capital gains income is exempt.
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In case of Short term capital gains -

Debt Oriented mutual fund units(DOMFU), Special Rate 15% applies when the units are sold within 12 months of purchase .
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In case of Long term (DOMFU)- Indexation will apply and special rate of 20% is applicable.
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Joshi Apexa Bhaveshbhai

Joshi Apexa Bhaveshbhai (Querist)
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24 July 2013 Thank you so much sir

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