Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

LTCG on redemption of mutual fund

763 views 3 replies

CA Raj Doshi

Practising CA

8954 Points Posted on 19 June 2019

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
Regards
Raj Doshi
rcdco.in

Replies (3)

Nirmal Bhansali

61 Points Posted on 19 June 2019

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

Gauthami

Student CA Final

431 Points Posted on 19 June 2019

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

Om Goyal

445 Points Posted on 22 June 2019

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