Does a mutual fund investment attract LTCG or STCG if both the capital and profit is reinvested?

#1
Does a mutual fund / index fund investment attract LTCG or STCG if both the capital and profit is reinvested within the same year and within the same scheme of its initial redemption?

Example:
I invest 10 lakh in nifty index mutual fund in year January 2019 and I redeemed 12 lakh (2 lakh profit) in the same year in November 2019, I reinvested the 12 lakh in the same scheme during December 2019 when the index was at its bottom. In such case I would not be having any cash with me for that year. Do I still have to pay any LTCG OR STCG for the year 2019?

Thanks in advance.
 
#4
Does a mutual fund / index fund investment attract LTCG or STCG if both the capital and profit is reinvested within the same year and within the same scheme of its initial redemption?

Example:
I invest 10 lakh in nifty index mutual fund in year January 2019 and I redeemed 12 lakh (2 lakh profit) in the same year in November 2019, I reinvested the 12 lakh in the same scheme during December 2019 when the index was at its bottom. In such case I would not be having any cash with me for that year. Do I still have to pay any LTCG OR STCG for the year 2019?

Thanks in advance.
You have sold the units of equity mutual fund before completion of one year ,so the capital gains are short term capital gains.....you have to pay short term capital gains tax @ 15 % plus cess....

There is no exumption for tax if you invest short term capital gains or the full sales proceeds in another investment. Only if your total income for the year including the short term capital gains of Rs 2 Lakhs is less than Rs 2.5 Lakhs then you can adjust this capital gain in the minimum taxable limit and then no tax is payable....otherwise there is no way of escaping short term capital gains tax.

For more information read the post below :

https://cleartax.in/s/taxation-on-income-earned-from-selling-shares


Smart_trade
 
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#5
it doesn't matter whether you reinvest in the same MF or something else or dont reinvest at all.

Your capital gain is taxable and can be offset against capital loss in the same year / period
 

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