Dear friends and colleagues, I have 2 queries regarding Mutual Fund investment and would be really thankful if you can clarify them.
1) I had 8 Mutual Fund accounts which were purchased more than 5 years back. I redeemed the MF accounts, and STT was deducted and the amounts were credited in my bank accounts. I now want to put the redeemed amount in fresh MF accounts the entire proceeds in my name and my father's name as nominee so that these MF accounts can be dematted and put in my existing demat account.
Now, my doubt is, since I have invested in MFs(which I propose not to redeem for another 3 years), I would like to know whether the sale proceeds will be added to my income and attract income tax eventhough they are already STT paid.
2) I have already saved tax for 1.5lakhs by investing in PPF. I further want to invest in MFs additional amounts which I do not propose to encash for another 3 years. i would like to know whether the above investment will also attract income tax.
Thanks a lot.
CAclubindia
