long term capital gain on mutual funds is taxable or exempt?
15 Replies
Tushar Arora
(CA Finalist & Article)
(179 Points)
Replied 13 July 2011
exempt if the mutual fund is equity based fund i.e. having equal to or more than 65% investment in equity..
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 13 July 2011
YES AGREE WITH ABOVE AND BY VIRTUE OF SECTION 10(35).
Durgesh Joglekar
(Mcom)
(11558 Points)
Replied 13 July 2011
Agree with tushar......
In the case of long term capital gain arising out of the sale of shares or equity mutual funds, there is no income tax under section 10(38) is fully exempt.
Dheeraj
(Learner)
(1100 Points)
Replied 13 July 2011
these are normal mutual funds and i think co. never tell us what they will do with the money recd. against mutual funds..
i mean how can i know they invest >65% in equity
Durgesh Joglekar
(Mcom)
(11558 Points)
Replied 13 July 2011
Dheeraj......
in FACTSHEET of any AMC it is specified about it... as EQUITY oriented mutual fund schemes.....
or else you can check out at...
Dheeraj
(Learner)
(1100 Points)
Replied 13 July 2011
i think all mutual funds are not exempt
like mutual funds of Reliance, HDFC, UTI etc.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 July 2011
check the document under link to find that your mutual fund is exempted or not
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/sec_010(23d).htm
Dheeraj
(Learner)
(1100 Points)
Replied 13 July 2011
@ US Sharma...
Already read this page..
this page does not include all as specified above like HDFC etc.
@ Durgesh Thanks Sir, But this site is not working...
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 July 2011
go to your mutual fund site and check the status of specific fund, also the redemption memo contain the exemption notification data.
mere on gross information "mutual fund" discussion can not continue. unless specific fund details are available
Durgesh Joglekar
(Mcom)
(11558 Points)
Replied 13 July 2011
you can try
or search as AMFIINDIA on google.com you will get the working link/site........
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 13 July 2011
yes it is exempt...agree with all of them
GIRISH KHUBCHANDANI
(STUDENT)
(90 Points)
Replied 16 July 2011
LONG TERM CAPITAL GAIN ARISING ON MUTUAL IS EXEMP UNDER SEC 10(38) IF AND ONLY IT IS LISTED OTHERWISE IT WILL BE TAXABLE.
Balaji
(Knowledge Seeker)
(317 Points)
Replied 18 July 2011
No need to rack your brains-if the AMC has deducted STT,then it is exempt.Otherwise taxable.
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