Redemption of Mutual Fund

Please tell me that amount received on redemption of mutual fund is exempted or taxable if there is a short term redemption or long term, and if its any relation with Sec. 10(35). Samely if the amount received on its sale is it will be considered as capital gain or not.

Replies (5)

it is actually depends on the Kind of Mutual fund

1) if Equity Oriented  MF is sold - for Less than one year then 10% taxable & it is STCG if sold after one year of purchase then the same is full exempted u/s.10(38) & i.e. LTCG

2) if MF is Liquid fund - then the surplus amount what ever is recd. will be treated as Dividend fully exempted u/s.10(35)

3) if the MF is Fixed tem Plan (FMP) - then in this case there are two types of treatment one is Dividend (surplus recd. on redemption) is tax fee u/s.10(35) of another it will be treated as LTCG with indexation taxable @ 20% depending upon the type of fund - plan & options & period of investment.

i think this will clear your all queries....

 

 

 

 

Yes I agree with u

But now it is taxable to 15%.

any income received in the form of dividend is exempted from income tax

any gain or loss arising on sale or redemtion of the transations before one year are taxable .

but after one year these are exempted.

 

ya

I have redeemed Mutual Fund, pls let me know if I have to pay any tax / service tax / commission on redemption? If it is then what is the percentage?

kindly clear that who will deduct STCG in the case of redemption before 12 months. mutual fund company or through advance tax

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