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Tax in redemption of mf units?

Anonymous (-) (279 Points)

30 May 2017

Is redemption of units of mutual funds taxable in the hands of an individual? What about in the case of switch? How will capital gain be calculated?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 30 May 2017

Depending upon the time period of holding of equity/ non-equity based MF units, it differs.

Give exact details.

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Anonymous (-) (279 Points)
Replied 30 May 2017

I have invested in SIP, equity oriented fund.Rs 1000 is invested every month for 3years. Now, What would be the tax implications if I redeem all the unit and if I switch all the units into a different fund?

Poltu Ghosh (Job) (1865 Points)
Replied 30 May 2017

your capital gain will be calculated on the basis of period of holding of units. The period of holding will be determined for each and every SIP from the allotment date.

Anonymous (-) (279 Points)
Replied 30 May 2017

So, capital gain has to be calculated at the time of switch? Is there any way department can keep track of this, is there? Most people calculate capital gain only at the time of final redemption into bank account, right?

Poltu Ghosh (Job) (1865 Points)
Replied 30 May 2017

I'm In case of switching of funds both redemption as well as acquisition takes place. So on switching you need to compute capital gains as if it is a bank redemption. the department may come to know about your new acqùsition through AIR now SFT reporting.

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