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.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Section 94 applicability to reinvested mutual fund dividends and the treatment of loss on sale needs statutory clarification. Whether Section 94 sub provisions (7) or (8) govern mutual fund units with dividends reinvested daily/weekly, what record date applies for those provisions, and how loss on sale of such reinvested units should be computed; the forum reply did not answer the substantive legal questions.