Sale of units of mutual fund

Dear ramakrishnaraju,

I think u r talking about ELSS (Equity Linked Savings Schemes)/Tax Saving MF which r eligible u/s 80 C for deduction...........becos they have lock in of 3 years...........

Now the sale would result in Long Term Capital Loss since for MF to qualify for Long term Capital Asset the period of holding should exceed 12 months.............

Since these r equity oriented mutual funds i;e at the time of sale there will be a deduction on account of STT(Securities Transaction Tax) pursuant to which the arising GAINS will be exempt u/s 10(38)

Now, If income from any source is exempt then it's loss cannot be claimed, I mean u cannot setoff with ur other gains, it is a dead loss,,,,,,,,,,,,,,,, 

Yes Mr.Amir is rite....

Long Term CG on sale of shares is exempt from tax...

and therefore it's loss cannot be set off against any income...

hello amir sir,

The mutual funds which Mr. Ramakrishnaraju is talking may not be necessarily ELSS. Even other MFs say growth funds etc. do have a lock in period..