IF I SWITCH OVER FROM ONE SCHEME TO OTHER SCHEME OF THE SAME MUTUAL FUND WHETHER THE SAME WILL BE TAXABLE? WHETHER THE SAME WILL BE TREATED AS SALE AND WILL BE LIABLE FOR CAPITAL GAINS?
RANJAN MEHTA (Chartered Accountant) (589 Points)
28 May 2010IF I SWITCH OVER FROM ONE SCHEME TO OTHER SCHEME OF THE SAME MUTUAL FUND WHETHER THE SAME WILL BE TAXABLE? WHETHER THE SAME WILL BE TREATED AS SALE AND WILL BE LIABLE FOR CAPITAL GAINS?
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 28 May 2010
Rahul Gupta
(Project Controller ACA MBA(Fin.))
(8014 Points)
Replied 28 May 2010
Agreed, it willl be treated as sale and acoordingly, Capital gain will be calculated.
RANJAN MEHTA
(Chartered Accountant)
(589 Points)
Replied 28 May 2010
| Originally posted by : Rahul Gupta | ||
 |
Agreed, it willl be treated as sale and acoordingly, Capital gain will be calculated. |
 |
sir,
if u can give any reference of section or any caselaw pls.
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 28 May 2010
Yes, if you have swithed before 1 year, then STCG will applicable,
Rahul Gupta
(Project Controller ACA MBA(Fin.))
(8014 Points)
Replied 28 May 2010
Mr Mehta
Check this link may it provides you some provisions...
/forum/taxability-of-amount-from-mutual-fund-82848.asp
Regards
Gopalakrishnan Mahalingam
(Article Assistant)
(282 Points)
Replied 18 June 2015
Under which section switch over is taxable? Can anyone please explain?
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 18 June 2015
Switch over from one scheme to another is as good as withdrawal of funds and reinvested in other scheme. Therefore, same would deemed to be as sale of MF units. The period of holding units under old scheme is important to determine whether its a short term or long term capital gain and taxed accordingly. Switching to other scheme after a year would be deemed to LTCG, STT would be payable thereon even on switching and all LTCG would be exempt under Income tax act. Short term capital gain would be taxed @ 15%
Hope this solves your query.
Thanks and Regards,
Manoj B. Gavali
Rashi Bajaj
(CA)
(752 Points)
Replied 18 June 2015
By making a switch from one scheme to another, you are relinquishing your right over the former investment. This is treated as "transfer" for the puropose of capital gains. Depending upon the term of investment, LTCG/STCG will be applicable.
Regards.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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