Mutual fund plan consolidation: unit transfers for new units are not treated as a capital gains transfer. Transfer by a unit holder of units held in the consolidating plan of a mutual fund scheme, in consideration of allotment of units in the consolidated plan, is treated as a transaction not regarded as a transfer for capital gains purposes. The cost of acquisition of the units received in the consolidated plan remains the cost to the unit holder of the units held in the consolidating plan. The consolidating plan is the plan that merges under the consolidation process, and the consolidated plan is the plan with which it merges or that is formed by the merger.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual fund plan consolidation: unit transfers for new units are not treated as a capital gains transfer.
Transfer by a unit holder of units held in the consolidating plan of a mutual fund scheme, in consideration of allotment of units in the consolidated plan, is treated as a transaction not regarded as a transfer for capital gains purposes. The cost of acquisition of the units received in the consolidated plan remains the cost to the unit holder of the units held in the consolidating plan. The consolidating plan is the plan that merges under the consolidation process, and the consolidated plan is the plan with which it merges or that is formed by the merger.
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