Tax on switchover from one scheme of MF to another

yes short term capital gains will arise

Any specific wordings in the act or notifications for this. If you have kindly provide

As per my opinion switch from one scheme to another is not a transfer for cap gain calculation, because the person is same only plan is changed. So, no cap gain should be there? Its my opinion i am not sure.

Dear Paresh, Switching of one scheme of mutual fund to other can be said as redeeming the present units of this scheme and investing the proceeds in the units of another scheme, altogether a new transaction.. Hence it can be termed as a transfer U/S 2(47). For example, sale of one land and reinvesting the proceeds in another land attracts capital gains irrespective of the fact that it is reinvested in another land, same analogy applies here also. There are no specific exemptions like sec 54 in case of transfer of long-term residential house for this. Tax implications depend on how long you remain invested in the respective fund and accordingly will be liable to short term or long term. In the example cited by you, it is liable for short-term capital gains tax. Regards, Raghavendra