Will there be any tax implication for the investor if the MF scheme name is changed?
- Lav Kumar
No, change of name of a mutual fund scheme will not affect the investor in terms of taxation. Taxes will be payable based on the original date of investment irrespective of the change of name of the scheme.
Long-term capital gains on equity mutual funds are not taxed. But short-term gains are taxed at 15 percent plus cess. In the case of debt mutual funds, both short-term and long-term capital gains are taxed. Short-term capital gains (redeemed within 3 years) on debt funds are added to the income and taxed as per the individual's income tax slab. Long-term capital gains (redeemed after 3 years) on debt funds are taxed as 10 percent without indexation and 20 percent with indexation (plus cess).
This article was originally published on June 20, 2016.
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