Tax treatment on redemption of mutual funds
This query is : Resolved
R.J.SHRAVANI
(Querist)
18 March 2014
Dear Sir,
Please let me Know,
The tax treatment on:
a)Redemption of mutual funds.
b)sale of mutual funds.
Please let me Know,
The tax treatment on:
a)Redemption of mutual funds.
b)sale of mutual funds.
18 March 2014
1. If the units were held for a period of more than 12 months, then any gain is exempt.
Any loss is a capital loss which has NO tax treatment.
2. If the units were held for a period of less than 12 months, then the gain is a short term capital gain and is taxable @ 15%.
Any loss can be set off from other gain (Long term or short term). If not set off entirely, then can be carried forward for 8 assessment years.
Any loss is a capital loss which has NO tax treatment.
2. If the units were held for a period of less than 12 months, then the gain is a short term capital gain and is taxable @ 15%.
Any loss can be set off from other gain (Long term or short term). If not set off entirely, then can be carried forward for 8 assessment years.
R.J.SHRAVANI
(Querist)
18 March 2014
Dear Sir
If STT is deducted on the redemption.
If STT is deducted on the redemption.
18 March 2014
1. LTCG will be exempt only if STT has been paid at the time of redemption/sale.
2. Normally units are redeemed with the mutual fund only and they charge STT on the same.
2. Normally units are redeemed with the mutual fund only and they charge STT on the same.
Prof. Bajaj
(Expert)
25 March 2014
I agree with Mr. Bhardwaj for Equity Mutual Funds.
However, for non-equity mutual funds (i.e. debt, liquid, gold, FOFs etc), units held for more than 365 days will be taxed at 10% (without indexation) or 20%(with indexation.
For units held less than 365 days, the gains will be clubbed with income and taxed as per slab.
However, for non-equity mutual funds (i.e. debt, liquid, gold, FOFs etc), units held for more than 365 days will be taxed at 10% (without indexation) or 20%(with indexation.
For units held less than 365 days, the gains will be clubbed with income and taxed as per slab.
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