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Sale of Mutual Fund

301 views 6 replies

V Vinodkumar

Proprietor

230 Points Joined July 2017

One of my client invested in Mutual Funds in the year 2013 and again in the year 2018 and he has sold the same in the F.Y.20-21. Weather it is taxable now. If yes at what rates. and what about the calculation. Weather Difference between purchase and sales???

Replies (6)

Manish M Nair

Student

90 Points Joined July 2017

Hi VinodKumar

Mutual Funds are taxable when you sell units & depends upon the holding period. In your client case, it is Long Term Capital Gain. If Long term capital gain is upto 1Lakh, then no need to pay any tax on such income. If it exceeds Rs 1lakh then 10% on the excess amt over & above 1 lakh

CA Aakarsh Jain

10436 Points Joined March 2019

Yes continuing my friend's answer as above:

Income (LTCG) from mutual funds is the difference between Sales Price and Purchase price.

Indexation is not applicable in case of Shares, Mutual funds.