1. STT is payable only on Debt Mutual Funds

2. STT is levied on delivery based sale of a unit of Equity oriented mutual fund @ 0.001% to be paid by Seller levied on the price at which unit is sold

3. The mutual fund trust as well as the trustee company are exempt from payment of tax

4. Dividend Distribution Tax on Individuals and HUF in case of Liquid Schemes is 10% + applicable surcharge and cess

5. Cost Inflation Index for the Finacial Year 2001-02 was 200.

6. Indexation benefit is allowed in case of long term capital gain on other than equity schemes.

7. Mr. X invested Rs. 100 in a debt fund in FY 2015-16 and sold it for Rs. 150 in FY-2018-19.The Cost Inflation Index in FY16 was 254 and in FY19, it was 280.The Indexed purchase price will be Rs. 120

8. From a taxation perspective, equity mutual fund units held for more than 18 months are considered as long term

9. In the union budget for 2018-19, it was announced that while calculating Long Term Capital Gains (LTCG) on equity oriented mutual fund units, ,gains up to 31st March’18 will be Grandfathered i.e. for the calculation of LTCG, the reference price will be either, the price as of 31st March’18 or the actual cost of acquisition, whichever is higher.

10. The tax rates for long-term capital gain and short-term capital gain are different.

11. For Debt Oriented Schemes, on Short Term Capital Gain for investment held for 36 months or less – (a) for Individual / HUF / NRI, tax will be at the rate which is applicable to him as per his income slab.

12. As per prevailing provisions of IT Act, Long term Capital gains on equity oriented schemes up to Rs. 150000/- are exempted per year and hence Long term capital gains on equity will be taxed on such gains exceeding Rs. 1,50.000/-.

13. Under the concept of Granfathering , the “Grandfathered” persons enjoy the right to avail concession because they have made their decisions under the old law.

14. Long Term Capital Loss can be set off only against Long Term Capital Gains.

15. Indexed cost of acquisition is computed with the help of following formula : Cost of acquisition ×CII of the year of transfer of capital asset /CII of the year of acquisition

16. The benefit of indexation is available only in case of long-term capital assets and is not available in case of short-term capital assets.??

17. In case of Equity schemes, the rate of short term capital gain tax chargable from Resident Individual/HUF for the A.Y. 2019-20 is 15% + Surcharge+ Education Cess

18. Nagendra purchases equity mutual fund scheme units on 20th March'2018 at an NAV of Rs. 150 per unit and redeems the same on 29th August,2019 at an NAV of Rs. 258 per unit. The capital gains will be short term.

19. Mr. X , who is a resident Individual, purchased 100 units of Debt oriented mutual fund on 1st February'2017 and sold 75 units on 31st October'2019.The capital gains/Loss are short term.

20. Mr A purchases 500 Equity fund scheme mutual fund units on 5th April'2018 and redeems the same at a profit on 1st August'2019. The gains are short term.

21. Mr Anand purchases 1000 units in an NFO of a equity mutual fund scheme at an issue value of Rs. 10 each on 1st April'2018 and sells the same on 30th June'2019 at an NAV of Rs. 14. The amount of capital gain is Rs. 2000 and it is a short term capital gain.

22. For an Individual Investor, Debt Fund Long Term Capital gains are taxable for Assessment year 2019-20 at the rate of 20% with Indexation benefit + Surcharge + Cess

23. Mr. Kumar purchases Debt fund scheme units on 1st January 2016 worth Rs. 100000/- and redeems the same on 28th February'2019. If Cost inflation index for the year 2015-16, 2016-17, 2017-18 and 2018-19 is 254,264,272 and 280 respectively, The indexed cost of acquisition will be 120236 ?

24. Mr. Ashish, who is the resident individual buys 1000 units of Equity oriented mutual fund scheme units at an NAV of Rs. 54/- per unit on 20th February'2018 and redeems 500 of these units at NAV of Rs. 66 on 20th April'2019, The capital gain will be 6000/- and it will be Long Term and there will be no tax payable.

25. Mr. Ram who is the resident individual buys 10000 units of Equity oriented mutual fund scheme units at an NAV of Rs. 154/- per unit on 20th February'2018 and redeems 5000 of these units at NAV of Rs. 185/- on 20th August'2018, the short term capital gain will be 125000/-.

26. Mr. Mahesh , a residnt individual, buys 10000 units of Equity oriented mutual fund scheme units at an NAV of Rs. 154/- per unit on 20th February'2018 and redeems 5000 of these units at NAV of Rs. 185/- on 20th August'2019, the capital gain will be 145000/- and it will be short term.

27. Ramkumar purchased1000 units of equity oriented mutual fund scheme units at an NAV of Rs. 250 on 1st February '2018 and sold at an NAV of Rs. 360/- on 30th September'2019. The cost inflation index for the year 2017-18 was Rs. 272 and for the year 2018-19, it was 280. The long term capital Gain will be 110000/-.

28. Mohan purchased 400 units of equity oriented mutual funds units on 1st March'2016 at an NAV of Rs. 170/- and all of these were redeemed on 30th January'2018 at an NAV of Rs. 189/-. The tax on long term capital gains will be 7600/-.

29. A resident individual purchased 2000 units of an equity oriented mutual fund scheme at NAV of Rs. 80/- per unit on 1st January'2018 and these were sold at NAV of Rs. 95/- on 1st April'2019. The NAV of these units was Rs. 85/- on 31st January'2018.The capital gain thereon will be 30000/-

30. Mr. Dayanand bought equity oriented mutual fund units on 11-Nov-2016 for Rs. 19,500. NAV of these units was Rs. 12,000 as on 31-Jan-18. He sold all the units on 21-May-2018 for Rs. 9,000. The long-term capital loss will be Rs. 10500/-

31. 15000 units of a Debt oriented mutual fund scheme were purchased by a resident individual at NAV of Rs. 90/- per unit on 1st January'2018 and these were sold at NAV of Rs.120/- on 1st April'2019. The NAV of these units was Rs.105/- on 31st January'2018.The Capital Gain will be 45000/-

32. ABC Limited purchased 5000 units of a debt oriented mutual fund scheme units on 25th January'2016 at a NAV of Rs. 200. It sold all of these units on 28th January'2019 at a NAV of Rs. 260.cost inflation Index was 254 for the year 2015-16 and 280 for 2018-19. The long term capital gain will be 217638/-.

33. Mahendra, an NRI purchased 4500 unlisted units of a debt oriented mutual fund scheme units on 25th January'2016 at a NAV of Rs. 200. It sold all of these units on 28th January'2019 at a NAV of Rs. 260.If cost inflation Index was 254 for the year 2015-16 and 280 for 2018-19, the Capital gain will be Rs. 270000 and tax thereon will be @ 10%+ Surcharge and cess.

34. XYZ Limited purchased 8000 units of a debt oriented mutual fund scheme units on 20th January'2018 at a NAV of Rs. 200. It sold all of these units on 28th January'2019 at a NAV of Rs. 260.If cost inflation Index for the year 2017-18 was 272 and for 2018-19, it was 280 , the capitan gain and the rate of tax applicable on this transaction will be 480000 and 30%+ surcharge+cess respectively.The turnover of the company for the year 2017-18 exceeded 400 crores.

35. XYZ Limited purchased 10000 units of a debt oriented mutual fund scheme units on 20th January'2018 at a NAV of Rs. 200. It sold all of these units on 28th January'2019 at a NAV of Rs. 260.If cost inflation Index for the year 2017-18 was 272 and for 2018-19, it was 280 , the capitan gain will be 600000 and the rate of tax applicable on this transaction will be 25%+surcharge+cess. The turnover for the company for the year 2017-18 was less than 400 crores.

36. The rate of TDS (Tax Deducted at Source) applicable in case of dividend paid on mutual fund units to resident investors is 10%.

37. The rate of TDS (Tax Deducted at Source) applicable in case of redemption/repurchase of mutual fund units for resident investors is 25%

38. Capital loss can be set off against any other head of Income.

39. Short Term Capital loss can be set off against short term capital gains only.

40. Long Term capital loss could be set off against long term capital gains only.