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Capitalgain computation - mutual fund

Tax queries 1148 views 2 replies

hi!

Guidance required for considering date of sale/purchase of units of mutual fund.

Whether switching of amount from one mututal fund to other is considered as sale?

eg. Franklin India prima growth fund - date of purchase:25/11/05

                                                                     date of switching: 12/3/08

                Query: 1.can 12/3/08 be treated as date of sale and the transaction taxable to LTCG ?    

                              2. if after switching, i buy a MF- Franklin india blue chip - dividend fund and sale the units on 31/3/08 . Is this another transaction or mere extension of the first one?

i.e can the diff betn sell price and cost price on 31/3/08 be treated as separate capital gain transaction?

                 

 

Replies (2)

Ans1 yes 12/03/08 will be treated as date of sale and it will termed as LTCG.

ans2 switching over to another fund will be treated as another transaction.

 

Dear Sir,

Thanks for the quick answer

it would be really nice of you if you could tell me the reference from where you found out the answer.


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