gain on mutual fund ??

Madhusudan Kabra (knowledge seeker) (1779 Points)

16 December 2010  

Switing over from one scheme to another scheme of mutual fund requires recognision gain for tax and accounting purpose ?

                       Suppose i invested Rs. 100 in growth oriented mutual fund on 01.01.2010 and later on in Dec 2010 i switch over from this scheme to weekly dividend oriented mutual fund scheme. On Dec 2010 my NAV was 110. whether i have to recognise the gain of Rs. 10 (110-100) for accounting & tax purpose .

and also please suggest accounting treatment  in case where no reserve was created for unrealised gain on mutual fund.

 

 

With Warm Regards

M.s.Kabra