I bought 100 units @ 10/- of a MF on 27/09/2005. The first dividend received on 28/09/2005 was reinvested 6 units@ 9.0/-. I sold the total 106 units @ 12.5/- on 18/10/2006. What would be the capital gain/ tax liability.
In the same example if it was a growth fund and the qty sold was 100 only @ say 13.5/-, what would be the capital gain/loss?
RE:Capital gain MF Div reinvest
by Amitabh on May 25, 2007 10:08 AM Permalink
There will be no capital gain tax liability in either case.The dividend is tax free in the hands of investor and the units have been sold more than a year after they were bought.Long term capital again on sale of equity shares/equity oriented units is exempt from tax.
