I have redeemed Mutual Fund units in Franklin India Dynamic Asset Allocation Fund of Funds-Direct-Growth after completing 36 months. What are the LTCG (long term capital gains) tax implications? Comments SHARE Published on June 8, 2024 Trending in Portfolio Day...
LTCG on the sale of equity shares or equity-oriented mutual fund schemes was exempt u/s 10(38), but this changed in 2018. As of today, LTCG income tax on mutual funds (equity-oriented schemes) is charged at the rate of 12.5% on capital gains over ₹1.5 lakh (as per the latest ...
Long-Term Capital Gains (LTCG): If held for more than 3 years, you are taxedat 20% with indexation. Hybrid Funds (Combination of Equity and Debt) Taxation depends on the fund’s asset allocation. If more than 65% of the fund’s assets are in equities, it is taxed as an equity fund...
Mutual funds can be broadly categorized into 8 classifications based on their asset class – equity funds, debt funds, money market funds, balanced funds, fund of funds, sector funds, index funds and ELSS tax-saving funds. Let’s discuss the categories based on their asset class: Equity Fund...
Type of mutual fund scheme Tenure or holding period For income tax purposes in India, a short term holding period for debt funds is up to 36 months. The short-term period for equity funds is up to 12 months. Which means the long-term holding for debt funds is greater than...
If the investors sell the units of the funds before a period of less than 3 years, investors will have to pay short-term capital gains tax as per the slab rate applicable to the investor.Where the fund is held for more than 3 years and sold after that, the investors will get the ...
As of now, only a long-term capital gains tax (LTCG) is applicable at a rate of 10%, after the first year of investment. Disadvantages of Mutual Funds a. Costs Fund managers charge a commission, which is added to the expense ratio of the fund. This makes it a costly tool to buy....
The other is known as Long Term Capital Gains earned by selling a debt fund after 3 years. Tax on LTCG is 20% flat with indexation benefits, meaning your investment will be adjusted for inflation. Read more about saving taxclick here. ...
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In addition, several mutual fund schemes like Equity Linked Savings Scheme offer a tax benefit to their users. Here are three important laws that an investor should know when investing in mutual funds: Long-term Capital Gains Tax (LTCG) Short-term Capital Gains Tax (STCG) Long-term Capital ...