22 August 2008
Dividend from mutual fund is exempted from tax, but is the profit is exempted from tax.
For eg. if we purchase a mutual fund for Rs.10,000/- and if the same is matured after 3 years for a value of Rs.20,000/-, then the Profit of Rs.10,000/- is is taxed as long term capital gains at 20% or it is exempted from tax. If it is exempted, then is there any conditions for it.
22 August 2008
if it is equity oriented mutual fund(e.g elss) then it is exempt if units are sold after 1 year -sec 10(38). If it is units of other funds then long term capital gains @20% with indexation shall be payable, if sold after one year ,
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