Amit Bhatkar
(Service)
(457 Points)
Hi All ,
Could anyone guide me on the treatment in I.T. return of mutual fund investment.
Where can I claim the benifit in tax return ? What will be the treatment of units sold which was purchased in last year ? what about profit / loss on it ?
Thanks and Best Regards,
Amit
Sambu Suresh
(CA Job)
(564 Points)
Replied 03 July 2008
you can claim U/S 80C.
But the lock in period for invmentsment made in mutual fund is 3 years.
If u sold before 3 years. It would be taxable in the hand of the assesse.
the profit / loss arise on the sale of the MF are taxable uner the head capital gain.
if u sold MF after one year , theire will not be any tax on the profit / loss arises.
But If u sold before one year from the date of purcahse , it would be taxable either at 15% or at normal rates at your choice.
Vinod
(Assistant Audit Officer)
(1675 Points)
Replied 04 July 2008
Thanx for the explanation dear.
But there is a conflict.
U've said that "if u sold before 3 years. it would be taxable in the hand of assesse" and again, "If u sold MF after one year, there will not be any tax on the profit/loss arises"
Can't get yar.
1.the mutual fund should be equity oriented tax saver mutual fund for taking benefit u/s 80C not all mutual fund is eligible for tax benefit
2.if u take benefit u/s 80c then lock in period is 3 years
3.if u dont than one years will be treated as long term and gain on it will exempt
4. it means if u take benefit u/s 80C and then sell it before 3 yrs u will be taxed at zero point ( in the year in which u have bought that MF)
CAclubindia
