Tax saving Mutual fund in form of monthly SIP are readily available in money market. To avail the Taxable benefit lock in period of 3 years is applicable. My query is w.r.t. redemption of Mutual fund after 3 years. Since we are investing on a monthly basis. But after 3 years we can withdraw the full amount.
Since 3 years lock in period was completed for 1 month SIP only, will the withdrawal of entire money after 3 years be Taxable??
Need suggestion to resolve the query.
Dear Sir,
The entire amount will be redeemed in a series of redemptions where each point investment has completed 3 years.
So you cannot withdraw the entire investment upon the completion of 3 years of the investment made at first point.
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
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RBSM Corporate Advisors Private Limited
Pune
CA
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PARV & Co.
New Delhi
CA Inter
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Anupam Parashar & Co.
Ghaziabad
CA Final
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CCI
Pro
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