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FoF Tax Treatment

For the purpose of computing tax, all Fund of Fund schemes are treated as debt funds…

What is the tax treatment on fund of fund schemes?
Vikas Yadav

The tax treatment on a fund of fund (FoF) scheme is similar to those of debt funds, because all FoFs are treated as debt funds as far as tax treatment is concerned. The short-term capital gain on debt funds is added to the taxable income of an individual and is taxed as per the applicable tax slab. The long-term capital gain is taxed at 11.33 per cent without indexation or 22.66 per cent with indexation.



This article was originally published on September 02, 2011.

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