Maturity of mutual fund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 A Unit holder received amount through Maturity of mutual fund, is it taxable or not ,if taxable under which head?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 Taxability depends on the period of holding.

Period of holding is the difference between the date of transfer and the date of acquisition.

If the period of holding is 12 months or more, then the gain is exempt.

If the period is less than 12 months, then the gain is taxable as Short Term Capital Gain under the head Capital Gains.

So, you will have to calculate the period of holding of the units of the mutual fund.

If you have invested by way of SIP, period of holding shall be calculated separately for each SIP instalment.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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31 March 2012 Dear Friend,

The taxability of mutual fund depends on the type of MF-
If it is a long term Equity oriented mutual fund and STT is paid while selling the units of the same, It is exempt u/s 10(38).
for Others-
they are taxable at the time of maturity only, income during the period MF is held, is exempt u/s 10(35).
IF you have any further query, pls ask for clarification.

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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