Budget 2015-16- Income Tax Neutrality in case of Merger of MF Schemes
A positive for mutual fund (MF) investors is that scheme mergers – within
equity funds or / within other categories, would not be taxed under capital
gain.
In other words, such a merger would not be treated as a sale of fund by
investors.
This is a very positive for all MF investors. There are 2 reasons.
1. Any merger of MFs shall not be treated as sale.
2. The date of purchase will be the date of the investor’s original
purchase, before any merger.
Hence, for any capital gain purpose, it will likely favour the MF investor.
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