Redemption of mf under sip
This query is : Resolved
CA Sanjay Baheti
(Querist)
05 August 2015
One of my client being an Individual has invested monthly Subscription to Franklin Templet MF units under SIP since last 3 years. Hence he had contributed total Rs.36000/-.Now during year under consideration he has received from Franklin Rs.60000/- on redemption after lock in period of 3 years.
What's treatment of this amount being RS.60000/- from taxation point of view.That is whether entire will be taxable or only difference will be taxable or not taxable at all under specific section of I.T.Act
What's treatment of this amount being RS.60000/- from taxation point of view.That is whether entire will be taxable or only difference will be taxable or not taxable at all under specific section of I.T.Act
DINESH NAGPAUL
(Expert)
06 August 2015
Dear Friend
SIP is done generally in monthly installments. The Sale of units allotted for the SIP made within one year are taxable as SHORT TERM CAPITAL GAIN U/S 111 @ 15%. The rest part of sale of units are totally taxfree. In this query I have assumed that MUTUAL FUNDS Scheme is equity scheme.
Dinesh Nagpaul
SIP is done generally in monthly installments. The Sale of units allotted for the SIP made within one year are taxable as SHORT TERM CAPITAL GAIN U/S 111 @ 15%. The rest part of sale of units are totally taxfree. In this query I have assumed that MUTUAL FUNDS Scheme is equity scheme.
Dinesh Nagpaul
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