Taxability on maturity of mutual funds

Originally posted by : Pulkit
	Hello friends, During the filing of ITR of one of our clients, i am facing the folllowing problem:- He had invested Rs. 10,000 in an Equity oriented MF 5 years ago. Now during the PY 12-13, he received Rs. 12,000 on maturity. How should we show this in his ITR? Is Rs. 2000 his income from other sources during the PY or we should show it as Income under the head Capital Gains? Or is there some other tax treatment?

1) Long Term Capital Gain as units held for more than 12 months.

2) Capital Gain Taxation = NIL (since equity oriented scheme)

Rs. 2,000/- profit is exempt from tax. 

Originally posted by : |)eep @ k Gupt/\
	Originally posted by : Pulkit Hello friends, During the filing of ITR of one of our clients, i am facing the folllowing problem:- He had invested Rs. 10,000 in an Equity oriented MF 5 years ago. Now during the PY 12-13, he received Rs. 12,000 on maturity. How should we show this in his ITR? Is Rs. 2000 his income from other sources during the PY or we should show it as Income under the head Capital Gains? Or is there some other tax treatment? 1) Long Term Capital Gain as units held for more than 12 months. 2) Capital Gain Taxation = NIL (since equity oriented scheme)

But that applies if STT is paid on sale of MF.
In this case, MF has matured and therefore no STT paid.
Will Sec- 10(38) apply in this case?

Hello Pulkit,

Is STT is not paid on sale of Mutual Fund then exemption u/s 10(38) cannot be availed and Rs 2000 will be taxable as Income under the head Long Term Capital Gain.

Thanks & regards

Amber Jain

dear section 10(23D) is applicale if it is a mutual fund, section 10(38) applies on Equity share & equity oriented fund set up under a scheme of mutual fund referred in section 10(23D).

Gain shall be exempt..

Agree with Vishal and Amber Jain

Those gain will exempt for sure. If you are still unclear then I would suggest speaking to a mutual fund adviser to get the best from mutual funds in India