Will I have to pay any kind of tax for this Mutual fund units transfer or no
2 years ago
I was the co owner of some mutual funds with the capacity of the second applicant. Now the first applicant or I must say the real owner of those mutual fund dies. Now as per rule all the units of the mutual funds have been transferred to me. My question is Will I have to pay any kind of tax for this units transfer or not.
This is also made clear that the first applicant was not a blood relative of mine.
The transmission of the Mutual Fund takes place as a process where in if the first holder dies, it is either transmitted either to the joint holder or nominee, and if no nominee is their it us transferred to the legal heirs.
The Mutual Fund need to be in the name of a single investor for the units to be transferred to the registered nominee.
And for capital gains it is perfectly mentioned by the advocates to the reply.
Thank you
Lucem Leg
Responded 2 years ago
A.Dear Sir,
Now as the first applicant has passed away, so all the mutual fund units shall be transferred to you. As of now the mutual fund holdings are now in your name, you are the person who will pay capital gains tax on the redeemed units which is 10% on the amount exceeding Rs. 1 lakh in a financial year.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
The only time mutual fund units can be transferred to another person is if the unit holder passes away. You will have to pay capital gains tax on the redeemed units because the mutual fund shares are now in your name. Long-term capital gains above Rs 1 lakh in a financial year are subject to a 10% tax.
Thank you very much.
The only scenario in which mutual fund units can be transferred to another is in case of the demise of the unit holder. As the mutual fund holdings are now in your name, you will have pay capital gains tax on the redeemed units. The tax is 10% on long-term capital gains exceeding Rs 1 lakh in a financial year.
Thank you.
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