Queries

MF Switch From Growth To Dividend Option Attracts Tax Piyu Panch, Nashik What are the tax implications for switching units from one scheme to another within the same fund house or to another fund house? Switching units from one scheme to another, within the same fund house or between different fund houses is considered as redemption of units in the existing scheme and purchase of units in the new scheme. The tax implication depends on the type of fund, as taxation is different for equity and debt funds. Where the investment is switched from an equity fund, and if the holding period is less than a year, then it would qualify as short-term capital gains (STCG) and will be taxed at 15 per cent. If the holding period is more than a year, then it would be treated as long-term capital gains (LTCG), and it will be taxed at 10 per cent over and above the first Rs 1 lakh of capital...