Amit Kumar Verma (CA Final CS Professional) (501 Points)
01 February 2012Hi friends..
I want to know that how can I know that a mutual fund is equity oriented as u/s 10(38), LTCG is exempt only on equity oriented mutual funds provied STT is paid.
So how can I find out that a mutual fund is equity oriented.
Ameya Makarand Lonkar
(CA Final Student)
(56 Points)
Replied 01 February 2012
Equity oriented fund needs to satisfy two conditions:
1. More than 65% of the total proceeds of the funds should be invested in equity shares of domestic company. AND
2. the fund has been set up under a scheme of mutual fund specified under 10(23D)
Please suggest corrections, if any.
Amit Kumar Verma
(CA Final CS Professional)
(501 Points)
Replied 02 February 2012
Thanks Ameya..
But I have also found these facts in the books.
The thing is how can I know that more than 65% proceeds are invested in equity shares.
is this possible practically?
Ameya Makarand Lonkar
(CA Final Student)
(56 Points)
Replied 03 February 2012
You can get that information in information memorandum of that particular fund. You can get the information on internet as well. It is not practically impossible to find out that information.
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