August 14, 2014 6:32 pm
Are there any tax implications of switching mutual funds from regular to direct?
Eg: Will there any income tax i need to pay if i switch from HDFC top 200 Growth to HDFC top 200 Growth -Direct ?
Switch from ‘Regular’ plan to ‘Direct’ plan will be considered as redemption from ‘Regular’ plan and a new investment into ‘Direct’ plan…..
So, tax implications will be same as that of a redemption only….
If the tenure held is more than 1 year, it should be tax free. However, check for exit load.
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