Mutual fund consolidation transfer treatment applies where unit holders exchange units in merged schemes under defined conditions. Transfer by a unit holder of units held in a consolidating scheme of a mutual fund, in consideration of allotment of units in the consolidated scheme, is treated as a transaction not regarded as a transfer. The cost of acquisition of the units in the hands of the transferee is linked to the cost of the original units in the consolidating scheme. The consolidation must involve two or more schemes of either an equity-oriented fund or a fund other than equity-oriented fund.