Capital gain on mutual funds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2011 sir,
i am invested every month 9000/- in mutual fund through sip from April 2007 to August 2011 and this sept i had sold all the units of mutual funds. what is the procedure and tax liabilities in my hand.plz help me and suggest the income tax Sections also.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

17 January 2012 Each SIP instalment in mutual fund shall be treated individually for computing the period of holding.

Period of holding shall be calculated from the date of investment to the date of sale.

Where the period of holding is more than 12 months, the capital gain shall be exempt.

Where the period of holding is less than 12 months, the capital gain shall be Short Term Capital Gain.

Tax rate will depend on the nature of the mutual fund.

If it is an equity oriented fund tax rate will be 15%.

Otherwise, normal slab rate shall apply.