Taxation on Switching of Mutual Funds | Is Mutual Fund Switch Taxable? | CA Shivam Chaurasia

A switch in a mutual fund means redeeming units from one scheme and investing the proceeds into another scheme (even within the same AMC). For income tax purposes, a switch is treated as:

1. Redemption (Sale) of the existing mutual fund units, and
2. Fresh Purchase of units in the new scheme.

Therefore, capital gains tax may arise at the time of switching.

Many investors believe that switching from one mutual fund scheme to another within the same AMC is tax-free. However, under the Income Tax Act, a mutual fund switch is treated as a redemption of the existing units and a fresh purchase of new units, which may result in capital gains tax liability.

In this video, CA Shivam Chaurasia explains:

✅ What is a mutual fund switch?
✅ Whether switching between mutual funds is taxable
✅ Tax implications of switching equity mutual funds
✅ Tax implications of switching debt mutual funds
✅ STCG and LTCG taxation on mutual fund switches
✅ Tax treatment of STP (Systematic Transfer Plan)
✅ Practical examples for better understanding
✅ Reporting in Income Tax Return (ITR)

If you invest in mutual funds, SIPs, or use STP strategies, this video will help you understand the tax consequences before making a switch.

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Видео Taxation on Switching of Mutual Funds | Is Mutual Fund Switch Taxable? | CA Shivam Chaurasia канала CA SHIVAM CHAURASIA