Changing MF units from regular to direct: is it redemption and invites tax?

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I had some Mutual Fund units bought through stock broker. I realized that REGULAR schemes pay commission to agent, so requested Mutual Funds to convert them to DIRECT.

Now AIS shows these units as redeemed.

Do I need to pay tax on all such conversions as if the units were first redeemed from REGULAR scheme and then reinvested in a new DIRECT scheme?

Replies (1)

Yes, it is treated as redemption first & then new purchase. So, capital gains liability arises.


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