TAXABILITY OF MUTUAL FUND SWITCH

Yes,Provided all LTCG & All Sections are Applicable.

Agreed, it willl be treated as sale and acoordingly, Capital gain will be calculated.

Originally posted by : Rahul Gupta
	Agreed, it willl be treated as sale and acoordingly, Capital gain will be calculated.

 sir,

if u can give any reference of section or any caselaw pls.

Yes, if you have swithed before 1 year, then STCG will applicable,

Mr Mehta 

Check this link may it provides you some provisions...

/forum/taxability-of-amount-from-mutual-fund-82848.asp

Regards

Under which section switch over is taxable? Can anyone please explain?

Switch over from one scheme to another is as good as withdrawal of funds and reinvested in other scheme. Therefore, same would deemed to be as sale of MF units. The period of holding units under old scheme is important to determine whether its a short term or long term capital gain and taxed accordingly. Switching to other scheme after a year would be deemed to LTCG, STT would be payable thereon even on switching and all LTCG would be exempt under Income tax act. Short term capital gain would be taxed @ 15%

Hope this solves your query.

Thanks and Regards,

Manoj B. Gavali

By making a switch from one scheme to another, you are relinquishing your right over the former investment. This is treated as "transfer" for the puropose of capital gains. Depending upon the term of investment, LTCG/STCG will be applicable.

Regards.