STCG/LTCG on Switch/Redemption of MF’s(Equity/Debt)

POSTED BY Abhishek ON October 24, 2012 12:17 am COMMENTS (3)

I’ve the following doubts related to CG(Capital Gains) calculation for the following scenarios : 
1) I’m planning to redeem my investment in Fidelity Equity, made in Jan’12.Even though,there won’t be an exit load charged by the AMC(due to the current exit window offered),what are the other charges(deductible both at source as well in terms of CG) that would be applicable for this transaction.

2) My father had made an investment in BSL Income Plus(G) in Jan’01.I’m planning to setup a STP in the fund to both Equity & Debt funds of BSL.What would be the charges(deductible both at source as well as in terms of CG) that would be applicable on the same.

3 replies on this article “STCG/LTCG on Switch/Redemption of MF’s(Equity/Debt)”

  1. Dear Abhishek, yes STT ‘ll be applicable at the time of redemption. Regarding CG calculation for BSL Income fund for your father’s investment, please calculate on your own using Cost Inflation Index table.



  2. Abhishek says:

    Hi Deepak, thanks a lot for the reply. Just a few follow up questions based on your reply.
    1) Won’ there be any STT deducted in point 2, if the same is switched to a Equity fund ?
    2) For point 1, how do i go about calculating CG and the applicable tax ?
    3) For point 2,since it is going to be a STP, how would i calculate CG and the tax. It was a lumpsum investment made in ’01 into Income Plus. Assuming i’m going for a 5k STP every month till March’13 ??

    It would of great help if you could explain with sample figures,wherever applicable.

  3. Deepak R khemani says:

    In case of both Fidelity and BSL,NO CHARGES are deductible.
    LTCG or STCG has to be computed by you in your IT returns, the MF does not do it for you.
    No entry loads and check for exit lods now which have changed in many schemes.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.