Tax on maturity amount in mutual fund .

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jagdish mhatre (Querist)

02 September 2017 Sir if I invest in mutual fund in equity oriented schemes for 25 years through SIP.

And fund value after 25 years will be 1.5 crore & if I withdraw 1.5 Crore that time.

Then any tax i have to paid or whole 1.5 crore amount is tax free?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

02 September 2017 Equity fund investments are tax free if redeemed after 365 days from the date of investment.

In SIP investments, for example if SIP date is 26th of every month and the first date is 26th Jan 2017 and last SIP date is 26th August 2017. The investment made in 26th Jan 2017 will be tax free if redeemed on or after 27th Jan 2018, 27th Feb 2017 will be tax free if redeemed on or after 28th Feb 2018 and so on..

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

02 September 2017 In your query, accordingly you calculate. Obviously, 1.5 cr will not be fully tax free if your last SIP date was within one year before the date of redemption

jagdish mhatre

jagdish mhatre (Querist)

02 September 2017 Thanks sir for your reply.

It means i have to wait for 26th year to pass for availing total tax free maturity amount.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

04 September 2017 You can redeem the investments upto 24 th year after completion of 365 days. For the investments done in 25th year only, you have to wait till 26th year

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