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A/c entry of mutual fund

A/c entries 15292 views 3 replies

Suppose I've invested Rs.1,00,000.00 in a Mutual Fund on 01/04/2010 and the same amount again on 01/04/2011 & 01/04/2012, totalling my investment to Rs. 3,00,000.00. Now, I redeem it on 31/03/2012 for which I receive Rs.4,50,000. How can I show all the entries in accounting?

Also, how much of all the investments and its dividend exempted from income tax ?

Thanks in advance.

Replies (3)

I hope so you sold your investment on 31/03/2013.

1) Mutual fund a/c 100000

to bank a/c                   100000

Same entry for next 2 years

2) Bank a/c Dr  450000

to Mutual fund a/c 300000

to Profit on mutual fund A/c 150000

 

Regarding exemption it depend upon whether it is debt fund or equity.

If it is Debt fund than it is taxable. if Equity than exepmt if it is held for more than 1 year.

If it is Debt fund than it is taxable. if Equity than exepmt if it is held for more than 1 year.
 

what is a debt fund actually? Is it in anyway related to debenture issues?


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