Question: Hi, I have invested in mutual funds for 3 months. Then I got my money back. With this can I get any tax exemption. Or do I need to invest for whole financial year. Kindly provide the details.
Answer: Dear Mr Ramesh, gains arising from investment in equity mutual funds (including ELSS), for a period of less than 12 months is considered as short-term capital gains. The amount of gains needs to be included in your taxable income while filing your return of income.
In order to get tax deduction for investment in ELSS schemes, you need to stay invested in the scheme for minimum 3 years period. Kindly click here to know more about ELSS mutual fund schemes.