Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: TDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: cpt
 
 
« General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Tax sword on MF deals
December, 05th 2009

Buying and selling mutual funds units on recently-opened trading facility on stock exchanges will not come tax-free. While trading equity schemes would attract securities transaction tax, debt and liquid funds would face capital gains tax.

Capital gains in respect of transfer of units of equity-oriented mutual fund held for more than 12 months (long-term ) would not be levied income tax provided the transaction of transfer of unit is subject to STT, said Vikas Vasal, partner, KPMG.

If the units are held for 12 months or less (short-term ) the same would be liable to tax at the rate of 15 per cent plus cess, he added.

However, trading of units of debt and liquid funds will not attract STT like other traded securities. They will be liable to capital gains tax as earlier, said an official in the income tax department.

Securities transaction tax (STT) is a transactions tax levied on sale and purchase of select financial assets such as shares and mutual funds. Retail transactions in shares are currently levied STT at 0.125 per cent of the total volume of the transaction

Markets experts, however, say that transacting through stock exchanges should not be treated as trading of units as the new facility was only an order routing system wherein the eventual transaction is still executed by the fund house.

Investors are not buying and selling mutual funds unit from each other through the stock exchange. The online facility is only an order routing system, said Dhirendra Kumar, CEO, Value Research. Some experts feel there is ambiguity over taxation of online trading of units of debt and liquid funds and a clarification may be needed from tax authorities to clear the air.

Though, STT provisions explicitly mentions about taxation of equityoriented mutual funds, clarity is needed about taxation online traded debt and liquid fund units, an official with a brokerage firm said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions