Mutual Funds

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Prajakta Prabhune (Querist)
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03 June 2008 What will be the tax treatment for switching over of Mutual Fund ? Is it taxable in the case of Short-term? Which section of the Income-Tax support this case?

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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03 June 2008 it will be treated as simple redemption and will be taxable as ltcg/stcg depending on duration.

S. SRIKANTH

S. SRIKANTH (Expert)
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04 June 2008 Dear friend

Dividend from Mutual fund are totally exempt in the hands of receipients as Div. Distr tax (DDT) is applicable and paid by the MF itself.

As far as Equity oriented funds if held foe more than one year LTCG will be exempt u/s 10(38).

Others will be taxed as STCG at 15% from AY 2009-10.

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