I invested in SBI Bluechip fund and UTI Equity through SIPs in 2013. If I redeem these, are there any tax exemptions?
Renu Sud, Noida
The only mutual fund scheme that is eligible for tax exemptions under Section 80C is the Equity Linked Savings Scheme (ELSS). These have a three year lock-in on investments in which tax deduction can be claimed on the investment and on completion of the tenure, the redemption is tax free. As both the funds in which you have invested are not ELSS, there are no tax savings on your investments, and for units that are held for more than a year on the date of redemption, the capital gains is nil. However, on units with holding period of less than a year, short-term capital gains would be applicable.
