If somebody can kindly explain me the tax implication on investment in equity based MFs. My main cocerns are (1). is sale of close ended MFs after its lock-in period, exempted from the 10% capital gain tax. (2) If I want to buy MF from secondary market would I be paying 10% capital gain tax when I again sell it within one yr.(3) In long term investment in equity based MFs if I donot want regular dividents what are the tax implications in short, if I opt for the growth option/reivestment option. (4) I am not able to comprehend section10(38) and section 112.
Answers:
1. Yes.
2. Yes you need to pay as short term gain(1year), incase long term (>1 Year)there is CG tax.
3. If you opted Dividend otpion, while dividend is declared, your dividend will be coming to you duly deducting the tax. Incase if you have opted growth, you may need to pay tax as said in point 2.
4. No idea.
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