Capital Gains on Shares or Mutual fund units taxable ? What you say , Man.
Yes , you rightly heard . Not all long term capital gain on sale Of equity shares or units of mutual funds are tax free.The conditions fulfilled for claiming exemption are
- the transaction of sale of shares or units must be subject to Securities Transaction Tax.
- In case of units of mutual fund additional conditions are :
- Units sold should be of Equity Oriented Fund , which mean that mutual fund scheme of which the UNIT was part should invest 50 % of total investible fund in equity shares. So you better read the mututal fund scheme before you invest.
- Confirm that the mutual fund you are applying has been set up under clause 10(23D ) of the I T act.
Did i say you correct?
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