Dear Sir,
if i switch from dividend option mutual fund to growth option within same scheme on June 2021
is capital gain tax applicable if i have purchase around 3 years back.
Thanks
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Mutual fund if i switch from dividend option to growth within same scheme
Replies (1)
In case of Mutual Fund investments, switching your investments from one option to another within the same scheme is considered as a sale (redemption).
Hence, the switch will attract exit load (< 1 year) and capital gains tax depending on how long you had invested.
You have not mentioned the category (equity/debt) of ur investment.
For equity funds, LTCG is applicable beyond 1 year period over and above 1lakh gain.
For debt funds, LTCG is applicable beyond 3 years period.
Suhas
Mutual Fund Distributor
Hence, the switch will attract exit load (< 1 year) and capital gains tax depending on how long you had invested.
You have not mentioned the category (equity/debt) of ur investment.
For equity funds, LTCG is applicable beyond 1 year period over and above 1lakh gain.
For debt funds, LTCG is applicable beyond 3 years period.
Suhas
Mutual Fund Distributor
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