What is the tax liability on redemptions?
Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term capital asset for the computation of capital gains, thus qualifying for the long-term capital gains tax rate. In all other cases, it would be treated as a short-term capital asset and would be taxed at the short-term capital gains tax rate. If you are NRI & want to start your Investments than don’t miss the opportunity and do avail the Special Kit made for NRI. For more Details Please click.
