Hi
One of my friend have taken a mutual fund and where by he had invested INR 5000 every month for 36 months. But after 27 months he sold all the available units and realised a profit of INR 15,000(Approx) and as per the details he has the STT has been paid on the transactions.
I would like to know whether this profit is a LTCG or STCG and how to calculate the tax.
Thanks in advance.
Saravana
Is it mutual fund oriented unit? If you have paid STT on it. this LTCG will exempt after 1 year.
the units sold, purchased within a year are STCA and rest are LTCA attracts STCG and LTCG resp.
and on mutual funds LTCG (if STT is paid i.e as in ur case) is exempt..
Hi
@ Pankaj : Yes it is a Mutual fund oriented one and STT has also been paid at the time of sale. Thanks . . .
@ Dheeraj : The only doubt is that as per policy he has to invest monthly for 36 months but he withdrew half way through and wanted to know whether pre closure can be considered as LTCG ? Thanks . . . .
Than its exempt from tax..
CCI
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