APPLICABILITITY OF SECTION 94

[S.C. WADHWA]

Dear Sir,

A company purchased mutual fund on which dividend received are reinvested daily/weekly. Now, I want to know whether provisions of Section 94(7) would be applied or be governed by provisions of Section 94(8).

Please clarify with an example how loss on sale of them will be dealt with.

In case of mutual fund on which dividend are reinvested on daily/weekly basis what would be record date for purpose of aforesaid sections.

AI Summary

Clarification Needed on Section 94(7) vs Section 94(8) for Mutual Funds with Reinvested Dividends and Loss Handling A user inquired about the applicability of Section 94(7) versus Section 94(8) of the Income Tax Act concerning mutual funds where dividends are reinvested daily or weekly. The user sought clarification on how to handle losses from the sale of such mutual funds and asked about determining the record date for these sections. The response from another participant asked if the user had received clarification on the issue, indicating a need for further discussion or information.