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Taxation of investment in mutual funds

VAIBHAV SINGHI (Student CA Final ) (46 Points)

31 October 2014

Dear sir i am investing in mutual funds via SIP as well as lumpsum investments. I want to understand taxation i will be subject to in case of sale of units and other income from mutual fund.

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3 Replies

Uteesh Dhar (abc) (51 Points)
Replied 31 October 2014

Dear Vaibhav,

Investing in MF through SIP or lumpsum is subjected to incomtax rules of Capital gain. When you redeem the units in MF then only your Capital gain or loss arises. There is nothing like accrud capital gain like accrud interest by a bank which taxed differently.

Hope this might have helped. In case you need further info kindly mail me on my ID

Uteesh Dhar

uteesh @ yahoo.com

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VAIBHAV SINGHI (Student CA Final ) (46 Points)
Replied 02 November 2014

Deai r sir supposeiiinvest in Sip for 6 or 12months and on maturity redeem the amount in between no sale purchase is done by me then will that be subject to Stcg ( 6months) and Ltcg(>12 months)

Uteesh Dhar (abc) (51 Points)
Replied 02 November 2014

It is very simple. If you redeem an instalment of SIP and if your investment has completed one year it will be LTCG and if it has not completed one year, it will be STCG. THat is it. There should not be any confusion in this.