LTCG on redemption of mutual fund

Practising CA

1. As per my knowledge and understanding , no stt is paid during investment and redemption of mutual funds.

2. LTCG in sale of equity oriented mutual funds (assuming stt not paid if point 1 above is true) are taxed at what rate ? Under which section ?

3. Indexation benefit available or not ?

4. Are LTCG on sales of equity oriented mutual funds exempt from tax ? or where they exempt in any earlier year. ?

Thanking all in Advance
Raj Doshi


Fund house might be paying the STT and charging to MF holder as expense though not sure.
Student CA Final

A Securities Transaction Tax (STT) is applicable at the rate of 0.001% on equity oriented mutual funds at the time of redemption of units. An investor is not required to pay STT separately as it is deducted from the mutual fund returns.
hence they are taxable as per provisions of sec 112A

Ltcg from Stocks & Mf is Exempt up to Rs 1 Lakh for AY 19-20 as per F act 2018 + the Scrip Price as on 31/1/18 Can be taken for Calculating profit if ur buy price is less provided start paid .in MF as Advised above Start is dedtd by MF. pl


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