Capital gain tax on redemption of units of mutual fund

If I purchased some units of mutual fund and such mutual fund invest in equity as well as in debt securities. Thereafter I sold them then how to compute Capital gain tax thereon.

Replies (8)
Holding period for the purpose of LT / ST differs from equity and debt oriented. Generally you ll get a CG statement from the MF co. Accordingly calculate

It depends upon holding period.

If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.

and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.

But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.

than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A

 

 

 

hope it helps you

If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.

and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.

But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.

than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A

 

 

 

hope it helps you

If the units were held for the period more than 12 months than it is long term capital gain otherwise it is short term capital gain.

and consequently tax is chargeble at the rate of 20% and slab rate retrospectively.

But if M.F. is equity oriented ( total investement in equity is more than 65% of total) defined under section 10(23)d.

than long term capital gain is exempt u/s 10(38) and short trerm capital gain is taxable at the rate of 15% as per section 111A

 

 

 

hope it helps you

Any income of a mutual fund registered under the SEBI Act, 1992 is exempt from income tax under Section 10 (23D) of the Income Tax Act, 1961. Thus, any income generated by the fund through investments, either in the form of capital gains (short term or long term), dividends or interest is exempt from income tax.

@ mohammad rasool baig:

It is only income of MF, which is exempt u/s 10(23D). On transfer of MF unit, it will attract either STCG or LTCG. So computation of holding period is needed.

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