RNI,SEBI have recently introduced the transfer of mutual funds online including gifting.
Fund houses are saying there will report this as redemption. Articles online say no tax as it is a gift.
I think IT dept should send out a circular reg this as non taxable else purpose of introducing this scheme is lost.
I might as well sell and pay LTCG and then gift.
anyone who has transferred MF shares to relatives can confirm if tax was paid
Thanks
So RNI and SEBI have introduced online transfer of mutual funds, including gifting. Fund houses are saying they will report this as redemption, but articles online say there is no tax since it is a gift. You are wondering if the IT dept. should clarify this via a circular to confirm it is non-taxable , otherwise the purpose of this scheme is kind lost. You are also thinking maybe you would end up paying LTCG and then gift.
CAclubindia
