It is for single mutual fund.
Mutual fund investments in a financial year without attracting entry into AIR
Dear Expert, I have a query. I was planning to invest in mutual funds to the tune of 10 Lacs in a particular mutual fund AMC (Example HDFC). While going through online to see the implications of investing the above-mentioned amount in a year, I have found that (Income Tax rules 114E) the Mutual fund trustee will have to report the transaction from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund. My question is: is the above statement means, in a single mutual fund AMC or all my mutual fund AMCs put together? Your help will enable me to plan my investments. Best regards, Rajesh
Asked 7 years ago in Income Tax
Its for Single mutual fund .
Thank you very much for a swift response. Is it for a single mutual fund AMC company? Best regards, Rajesh
Asked 7 years ago
Hi,
The limit is for per mutual fund company. Like you can invest aggregate 9 lacs in all the schemes of HDFC and also invest aggregate 9 lacs in various schemes of kotak.
Yes for all schemes of single mutual fund AMC company.
This relates to investment in one particular company. You may break the total amount into smaller investments in different companies.
Hope that clarifies.
Regards,
Nikhil.
Yes ,for a single mutual fund AMC company.
AMC has to report high value transaction .under which the reporting person/entity is required to submit details of transactions/persons/accounts which are determined as reportable.
Aggregation rule needs to be applied for specified transaction Rule 114E specifies that the reporting person (AMC)shall, take into account all the accounts of the same nature and aggregate all the transactions ,maintained in respect of that person during the financial year.
Hope it clarifies.
Hi Rajesh
The limit is for 1 AMC. All the funds of a particular AMC shall be cumulated.
You may invest amounts within 10 lacs each in separate AMCs.
HI Rajesh,
It means total funds invested from your side in an year but if you invest 10 lacs in one go then also it gets triggered.
Its not single AMC. It is considered cumulative.
Thanks
Damini
yes it is for a single mutual fund AMC company.
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