i had made an investment of Rs. 50,000 in reliance natural resources fund which i switched out to Reliance Growth fund. as on the date of swich-out fund value of Reliance natural resources fund was Rs.47,500/-. Is switching out from one fund to another is regarded as transfer under the Income Tax Act? Do i need to show difference amount of Rs.2500/- as short term/ long term capital loss?
1 Replies
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 05 August 2010
DEAR PRASANNA,
YES IT IS REAGRDED AS TRANSFER AND THE DIFFERENCE IS CHARGEABLE TO CAPITAL GAIN TAX I.E. LT/ ST DEPENDS UPON U'R HOLDING PERIOD.
SWITCHING OVER TO ANOTHER FUND IS JUST LIKE AS REDEMPTION OF UNITS OF OLD FUND AND FRESH INVESTMENT OF THE REDEMPTION AMOUNT IN THE NEW FUND.
THUS, IF THE PERIOD BETWEEN DATE OF PURCHASE OF REL. N.R.F. UNITS AND SALE DATE THEREOF EXCEEDS 12 MONTHS, IT WILL BE REGARDED AS LONG TERM CAPITAL GAIN/LOSS OTHERWISE IT IS A SHORT TERM CAPITAL GAIN/LOSS.
REGARDS,
MANOJ
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
