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Q.

Are profit from redemption of MF units taxable?

Tags: profit from redemption of mf units
Asked by mukul rai, 18 Feb '07 02:04 pm
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Answers (5)

1.

Long term capital gains (where holding period is > 1 year) arising on redemption of Equity Oriented Mutual Funds are exempt from tax.

Short term capital gains (where holding period is
Answered by adroitv, 19 Feb '07 01:38 pm

 
  
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2.

it depends on the type of MF you held. there are two types of tax, long term capital gains tax and Short term capital gains tax. Equity shares, mutual fund unit, zero coupon bond held for 12 months or less then it comes under Short term and if the same is held for more than 12 months it becomes long term.
Short-term capital gains are added to the total taxable income of the individual and therefore taxed at the relevant tax slabs. The gain in this case is simply the difference between the cost of purchase and the sale value of the unit. I heard a recent exception(but haven't confirmed it yet) that it's charged flat 10% irrespective of your slabs.
Long-term capital gains: Equity shares purchased after 1st March 2003 and equity mutual funds bought after 1st October 2004 are exempt from long-term capital gains tax. The intention is to encourage long-term savings in equities.
Answered by ABC, 18 Feb '07 02:34 pm

 
  
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3.

It is taxable only in short term i.e within 1 year.
Answered by P Ravi Krishnan, 18 Feb '07 02:50 pm

 
  
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4.

If you hold MF dor 1 yr no tax on gain. if it is less than 1 yr 10% tax is applicable on short term gain.
Answered by rajesh ravjibhai salia, 21 Sep '07 09:46 am

 
  
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5.

Hello.My advice for your long term investment would be these fund schemes.These funds are Equity linked and have delivered good returns when the market has gone up and sustained the bad periods of the market since its inception.Hence they are the proved ones.They are tax free for upto 1Lac rupees invested in them.Equity linked Mutual Fund earnings are Profit (or) Loss earnings and not interests (or) fixed income earnings as in case of Balanced (or) Debt Funds.Try to invest in 3-5 schemes if you can to diversify your portfolio.They are 1)SBI Magnum Global-G(Blue Chip),2)SBI Magnum Contra-G(Midcap),3)Franklin India Prima-G(BlueChip),4)Sundaram Select Midcap-G(Midcap),5)Reliance Vision-G(Midcap),6)HDFC TOP 200(BlueChip),7)HDFC Tax Saver,8)SBI Magnum Multiplier Plus-G(BlueChip),9)SBI Magnum Taxgain-G,10)HDFC Equity-G(LargeCap)
You may invest in any of these funds for your long term plan(above 5 years atleast) and you will surely get good returns.Remember invest 60% of your investments in ...more
Answered by Abdul Rehman, 18 Feb '07 07:32 pm

 
  
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