An exit load refers to the fee that equity-oriented mutual funds charge the investor at the time of pre-maturely exiting or redeeming a scheme. Usually, mutual funds charge 1 to 2% of exit load.
Kindly inform whether any income tax relief is available to retail investors absorbing such exit load
Yes, you can deduct it from the short term gain.
Dear Sir,
Thanks for your timely response.
I have received following reply from a CA over Twitter. This reply is opposite to what you have advised me.
The exit load is a penalty levied by a mutual fund scheme for early redemption. You cannot treat it as a loss, because the money you receive from the fund house has already deducted the exit load.
Please inform me about your views.
Kind regards,
Jagjeet Sharma
Both reply accepts allowability of exit load
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