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gain on mutual fund ??

Tax queries 721 views 2 replies

Switing over from one scheme to another scheme of mutual fund requires recognision gain for tax and accounting purpose ?

                       Suppose i invested Rs. 100 in growth oriented mutual fund on 01.01.2010 and later on in Dec 2010 i switch over from this scheme to weekly dividend oriented mutual fund scheme. On Dec 2010 my NAV was 110. whether i have to recognise the gain of Rs. 10 (110-100) for accounting & tax purpose .

and also please suggest accounting treatment  in case where no reserve was created for unrealised gain on mutual fund.

 

 

With Warm Regards

M.s.Kabra

 

Replies (2)

Gain will arise on switching only if you change the fund. Switching options of one fund will not result in capital gains. say changing from Reliance Growth Fund - Growth to Reliance Growth Fund - Div won't result in capital gains.

Thank you very much ankit....

Pls provide me any reference or material, guidline related to it if you have.........

 

 

Thanks in advance

 

Regards

M.s.Kabra


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