Mutual fund income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2009 1.What about gain recived from sale mutual fund units under growth scheme of mutual funds.

2. The mutual fund's income is taxable under which head?

3. only the dividend received from mutual fund is only exempeted U/S. 10 (35) or any other gain recevied is also exempted?

Thanks in advance.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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22 December 2009 Any income earned on mutual funds is tax free.
- Sec. 10(35)

If holding period of mutual funds is upto one year then these are short term capital gains otherwise long term capital gains.

Dividend is also exempt from tax.
- Sec. 10 (34)

Long Term Capital gains derived from Equity Oriented Fund is exempted u/s 10(38)