Capital Gain Of Mutual Fund

Dear Raju,

I presume that the person is investing Rs.10,000/- p.m. via SIP in the scheme.

1) He can withdraw all units allotted to him more than 12 months back and the entire redemption amount would be tax-free.

2) If the Rs.1,70,000/- that you are referring to is the amount invested more than 12 months back,then he can withdraw the same alongwith the appreciation,if any, on the same.The entire amount would be tax-free.

3) If,however, the amount of Rs.170000/- invested more than 12 months back has depreciated in value,say to Rs.160000/-,then though no tax would be payable,the loss of Rs.10,000/- has to be ignored and cannot be off-set against any other income/gains.

Trust this clarifies.Please let me know if you need any further clarifications.