Can someone explain me section 10(38)

There are few condition for gain on redemption of units of MF to be exempt u/s 10(38)

1. The units should be held for 12 months or more - Long Term

2. The units should be equity oriented units - 65% equity

3. STT should be paid on the units when sold / purchased

4. The gain is however taxable u/s 115JB as book profits - in case of companies

5. MF should be specified under clause 23D

If all of above conditions are satisfied only the it is exempt, else taxable.