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Is STP from an arbitrage fund taxable?

Money withdrawn via a Systematic Transfer Plan (STP) is considered a redemption in a fund

Is withdrawal from arbitrage fund for Systematic Transfer Plan (STP) is also taxable?
- Jitendra Bahl

Money withdrawn via a Systematic Transfer Plan (STP) is considered a redemption in a fund. Arbitrage funds are treated as equity schemes for taxation purpose. This means redemptions from them via a STP before a year would attract a short-term capital gains tax of 15 per cent. If investments are redeemed after a year, there won't be any tax as long-term capital gains tax is nil for equity funds at the moment.

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