Short Term Capital Gains Tax on Partial withdrawal from Equity MF ?

POSTED BY rahul chatterjee ON February 19, 2015 4:10 pm ONE COMMENT

Hello!

I have been regularly investing in Birla Sunlife Frontline Equity Fund (Direct) via SIP for the since June 2013 and have made sizeable gains thanks to the market rally. Now i would like to switch all the long term gains to a liquid fund to rebalance. I have a doubt regarding tax liability on the portion i want to switchover i.e.

The total amount i want to switch is about 25K with about 11K in long term capital gains. My question is if i switch over the entire 25K (principal + LTCG) would the principal 14K be treated tax free or would it count as Short Term Capital Gains.

Thanks in advance

Rahul Chatterjee

One reply on this article “Short Term Capital Gains Tax on Partial withdrawal from Equity MF ?”

  1. Hemanth says:

    equity mutual fund redemptions that are made after 1 year are not taxable rest all are taxable….. also check there might be some exit load on the funds.

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