AIS CAPITAL GAIN

Yes this gain is to be considered while filing ITR because this is treated as transfer in Capital Gains. And when you sale those new units, the cost will be the value at which the old fund is swapped into the new one.

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Yes thank you very much

Welcome 😄

It is not clear if the swap was done by the MF itself as a part of the process of consolidation of two or more funds of the same category.

In case the consolidation was done by the MF on its own, then, it would appear that u/s 47(xviii) and (xix) of the I-T Act, such a swap is not considered as a transfer for purposes of Sec 45, from 1.4.2016.

In this regard, please also read the clarifications given in certain newspapers as under:

https://economictimes.indiatimes.com/wealth/tax/how-to-calculate-long-term-capital-gains-on-equity-mutual-funds-after-re-categorisation/articleshow/63909130.cms?from=mdr

https://www.financialexpress.com/money/income-tax/your-queries-income-tax-switch-from-dividend-to-growth-option-in-mf-is-a-taxable-transfer/2285150/

 

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Thanks and please experts please weigh in your opinions.i saw an assessee who had this transaction and his refund was issued without any demand