Impact on Long Term Capital Gains Tax Exemption and Exit Load, on redemption of units, after transfer of the schemes of Fidelity Mutual Fund to L&T Mutual Fund.
Yes, even after the units are transferred from Fidelity Equity Fund to L&T Equity Fund, the units purchased by you which completed one year or more, if sold after merger date, will be considered as long term capital gains.
"As even after merger, the actual purchase date is considered for calculation of capital gain of mutual fund units."
When two schemes are merged, the scheme that gets merged is treated as the transferred scheme.
In mutual funds, if scheme A is merged with scheme B, then it is treated as redemption by unit-holders of scheme A and issue of units of scheme B to them is considered as purchase of new units.
The investors of scheme A are liable for capital gains tax as it is considered as withdrawal.
There is no long-term capital gains tax on investments in equity schemes if investments are held for more than a year (as in your above case, units are held for more than year, and above mentioned scheme is equity fund, you don't need to pay tax as the long-term capital gains in equity funds is nil.
In the case of debt schemes, investors have to pay both short-term as well as long-term capital gains tax on redemption, the long-term capital gains are 10% without indexation or 20% with indexation.
A merger of two schemes mean a capital gains tax liability for you.
When a scheme gets merged into another, the first scheme ceases to exist. In such a case, units of the first scheme are redeemed, but not returned to unit holders. They are then reinvested in the scheme in which the first scheme is to be merged. So even if you choose to stay invested, it is still deemed as a withdrawal from one scheme to another. In this case, the investor needs to mention his income in his tax returns and pay the capital gains tax wherever applicable.
Refer this extract from above notification
Earlier posting on merger