Tax implication on sale of equity oriented mutual fund
This query is : Resolved
29 July 2013
I have both short term and long term capital gains from sale of units of Fidelity Equity Fund (during the one month open window period when Fidelity Equity Fund was being taken over/merged with L&T Mutual Fund). Now LTCG should be tax-exempt on the sale of the equity units and the STCG should attract 15%. This is provided Securities Transaction Tax has been paid. Am I correct?
Now, during the open window period, Fidelity re-purchased the equity units without exit load. Fidelity also bore the Security Transaction Tax. Hence, Fidelity bore the Security Transaction Tax and not me. Does my not paying the STT but Fidelity paying the STT, change the situation?
Even if Fidelity paid the STT, LTCG will still be tax exempt and STCG will attract the usual 15% for me. Is this correct? Thanks.
Now, during the open window period, Fidelity re-purchased the equity units without exit load. Fidelity also bore the Security Transaction Tax. Hence, Fidelity bore the Security Transaction Tax and not me. Does my not paying the STT but Fidelity paying the STT, change the situation?
Even if Fidelity paid the STT, LTCG will still be tax exempt and STCG will attract the usual 15% for me. Is this correct? Thanks.
29 July 2013
You are right that you are in tax backet of 15% + 3% and your problem can be solved like you add STT in your income and show the same as paid as the compn your behalf. You should procure the letter from the company for payment of STT.
Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=670585
Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=670585
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Condonation . E-Verification of last year return .
- Management System (IMS)
- TDS Return Q1 FY 2026-27
- EPF FULL & FINAL RULES IN 2026
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
