I had invested Rs 1 lakh in 2006 in the HDFC Tax Saver ELSS. What's the tax implication (long term capital gains tax/income tax) when I redeem units in 2009. Will the profit/principal or both be included in the income for year 2009?
-Ranjeet Jha
HDFC Tax Saver is an equity linked saving scheme (tax saving mutual fund). As it is an equity oriented fund (those with equity exposure greater than 65 per cent), there would be no tax liability on the redemption amount. The income in the form of dividends (if any) from an equity fund are also tax free in the hands of the investor.
This article was originally published on March 25, 2008.
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