Redemption of MF is taxable or not. If not taxable under which section it is not taxable
Saraswathi.N (Audit Assistant) (25 Points)
02 July 2013Redemption of MF is taxable or not. If not taxable under which section it is not taxable
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 02 July 2013
There are few condition for gain on redemption of units of MF to be exempt u/s 10(38)
1. The units should be held for 12 months or more - Long Term
2. The units should be equity oriented units - 65% equity
3. STT should be paid on the units when sold / purchased
4. The gain is however taxable u/s 115JB as book profits - in case of companies
5. MF should be specified under clause 23D
If all of above conditions are satisfied only the it is exempt, else taxable.
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