Invest Mutual Fund Online and get long-term capital gains tax benefit
For the purpose of taxation, a switch is considered as a redemption from one fund and a fresh purchase in another. If you invest in an equity fund and switch within one year, the gains will attract short-term capital gains tax at 15 per cent. If you switch out of a liquid fund before three years, the gains will attract short-term capital gains tax.
The gains will be added to your income and taxed at the income tax slab applicable to you. You will have to wait for your investments to qualify for long-term capital gains tax if you want to avoid paying taxes while switching to another fund. You should also consider exit load before taking a final call.
For further information contact SaveTaxGetRich on 94 8300 8300
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