Mutual Fund query

714 views 1 replies

Hello Friends, 

I want to ask you about the following questions regarding Mutual Fund Investment.

1. Is tax becomes payable on redemptions of MF Units ?

2. If, answer of q.1 is yes then will it be under Capital Gain or under income from other sources ?

3. If, answer of q. 2 is yes then under Capital Gain then whether idexation is available or not ?


Replies (1)

 

I have found a answer of your question Mr. Kalpesh.

 

Will TDS be deducted on the redemption of units? If yes what will be the basis of deduction of TDS

TDS is not deducted on the sale proceeds for Resident Indians.
In case of NRI's, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains. For short term capital gain the tax is deducted @ 33% while in case of long term capital gains it is deducted @ 11%.

 

There is another similar case which i have found on CACLUB forum i.e.

/forum/tds-on-mutual-funds-52785.asp

 

I hope that you will find your desired answer.

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