Pl help it is urgent

597 views 2 replies

hi frndz,

pl let me know that

Redemption of mutual fund which is hold for more than one year should be treated as tax free and should

not treat as income for that F.Y.

how it shld be shown in Computation of total income and under which section.

pl help me.

tnx and regards to all

naroo

Replies (2)

redemption of mutual fund held for more than one year is not considered what is taken for computation is the income .At present diverdified equity Funds which declares dividend  need not be considered as dividend is exempt in the hands of shareholders/unit holder.But Interest Income of Debt Funds should be considered if it exceeds the threshold limit .I think the AMC might deduct TDS and remit only the balance amount as interest declared and capital gain arising on redemption if it is a short term is also to be offered for computation of Income

Interest Income is shown under other sources of Income. and capital Gain (Short Term)  under Capital Gains

Kindly note that Capital Gains both short term and long term is offered in computation for Debt Funds and short term for Equity Funds

I expect Other experts Like Mr Amir to comment on the same

 

 section 10(35) gives exemption in respect of any income from mutual funds

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