1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

ELSS Mutual funds redeemtion and tax implications

Discussion in 'Technical Analysis' started by payazishan, Apr 26, 2018.

  1. payazishan

    payazishan Member

    Joined:
    Sep 5, 2017
    Messages:
    19
    Likes Received:
    12
    I have a query on ESS tax saver MF.

    Invest 5000/month in Axis MF tax saver from 2015 October Regular plan. Lockin period is 3 years from invested date. Getting tax benefits as well in 80c section.

    Now Axis Mf changed the fundamentals attributes of MF and gave options to redeem the amount.

    Now my query is if I redeem all my amount, till now whatever invested, so what will happen to my tax benefits which i showed to get rebut in 80c section on income tax?

    Sent from my Redmi 4 using DIY Technical Analysis mobile app
     
    payazishan, Apr 26, 2018
    Share #1
  2. chaitanya_mella

    chaitanya_mella Contributor

    Joined:
    May 20, 2017
    Messages:
    141
    Likes Received:
    109
    chaitanya_mella, Apr 26, 2018
    Share #2
  3. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    You will not be allowed to redeem the units that are locked. Ideally it isn't allowed to be redeemed.

    Did they change the fundamental attribute of the funds from ELSS to something else? If yes then not sure what happens.
     
    shabbir, Apr 27, 2018
    Share #3
  4. payazishan

    payazishan Member

    Joined:
    Sep 5, 2017
    Messages:
    19
    Likes Received:
    12
    payazishan, Apr 27, 2018
    Share #4
  5. payazishan

    payazishan Member

    Joined:
    Sep 5, 2017
    Messages:
    19
    Likes Received:
    12
    Yes fund house changed the attributes of elss as well.

    Sent from my Redmi 4 using DIY Technical Analysis mobile app
     
    payazishan, Apr 27, 2018
    Share #5
  6. chaitanya_mella

    chaitanya_mella Contributor

    Joined:
    May 20, 2017
    Messages:
    141
    Likes Received:
    109
    Cool. I have invested in this fund and haven’t received any update on the change. Also, redemption can happen only on clear units. So even if there are changes there is nothing we can do unless the lock-in ends.


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    chaitanya_mella, Apr 27, 2018
    Share #6
  7. payazishan

    payazishan Member

    Joined:
    Sep 5, 2017
    Messages:
    19
    Likes Received:
    12
    I cannot redeem the ELSS until I complete 3 years from the DOI. Now i will cancel and invest some where else

    Sent from my Redmi 4 using DIY Technical Analysis mobile app
     
    payazishan, May 4, 2018
    Share #7