I had invested a lumpsum in Mirae Asset Short Term Bond Fund - Direct Plan - Weekly Dividend Scheme, and switched to Mirae Asset Emerging Bluechip. I downloaded the capital gains statement and saw that there is short term capital gains. How is it possible? There shouldn't be any capital gains in a weekly dividend payout scheme as the dividend is taxed and then re-invested. The AMC customer care told me that they do not tax individuals in the case of a dividend payout scheme.
- Shreedhar
The Sebi norms stipulates that mutual funds can declare dividend only from realised gains. Mirae Asset Short Term Bond Fund - Direct Plan is little over two-year old scheme and it has a corpus of just ₹4 crore. It hasn't declared any dividend, probably because it didn't have any realised gains. However, Mirae Asset Short Term Bond Fund - Regular Plan has been regular with dividends. This could be the reason why your gains are shown as capital gains. Short term capital gains on debt funds are added to your income and taxed as per the applicable tax slab.
This article was originally published on September 21, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
