Withdrawal of mutual fund and form 16

Tax queries 1029 views 2 replies

hi,

In case the person invest in mutual fund and withdraw some amount after two year that means reverse the amount. is it taxable in individual return ? and how can this amount present in form 16 by employer.

Replies (2)

In form 16 Employer give details of the payments made by him to the employee, tax deducted and deposited on behalf of the employee. this mutual fund withdrawal will not be reflected in Form 16, if employer considers the other income disclosed by the employee he will deduct the tax after taking into consideration of  such income and he will shows only tax portion, as the tax deducted and paid on a particular date into govt a/c.

Section 2(42A): Under Section 2(42A) of the Act, a unit of a mutual fund is treated as short-term capital asset if the same is held for less than 12 months. The units held for more than twelve months are treated as long-term capital asset.

Thanks Dear


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