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
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Mutual fund mip and fmp
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. |
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