Mutual fund mip and fmp

The amount received on redemption of Mutual Fund MIP and FMP is dividend,Interest or Long term Capital Gain It Redemtion is made after One year from the purchase of Units.

Pl anybody can tell

Thanks

Replies (3)

FMP (Fixed Maturity Plan)

Redeemed < 1 year --> STCG

After > 1 year --> LTCG

 

MIP (Monthly Income Plan)

Treated as Interested and shown under the Head Other Sources.

 

Dear I am sure about FMP but not completely on part of MIP. I think the treatment will be done for MIP as Interest because it is the most relevant treatment among Dividend, Capital Gain & Interest.

Dear Ashok,

The amount received on redemption of Mutual Fund is a transfer of capital asset U/s.2(47) of the Income tax act 1961. Transfer of Capital asset would attract Capital Gains tax. Since the capital asset (MF Units in the present case) is transfered after a period of one year from the date of purchase, it would be subjected to long term capital gains tax.  

However, gain on transfer of equity oriented fund subjected to Securities transaction tax is exempt from tax U/s.10

 

Originally posted by : Rahul Gupta

FMP (Fixed Maturity Plan)

Redeemed < 1 year --> STCG

After > 1 year --> LTCG

 

MIP (Monthly Income Plan)

Treated as Interested and shown under the Head Other Sources.

 

 
 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details