Explore mutual fund taxation for informed investment decisions. Delve into capital gains, Dividend Distribution Tax, ELSS tax benefits, and effective planning for optimal financial strategies and potential savings.
When an investor wants to exit an investment in a mutual fund, he sells the shares back to the mutual fund, and in the process, incurs a capital gain or loss. If the shares of one fund are exchanged for another, even within the same fund family, it is still treated as a sale. ...
Key Factors That Determine the Mutual Fund Taxation in India Breaking down the concepts of mutual fund taxation further into smaller bits makes it far easier to understand. So, let’s take our first step by looking at the three factors that influence mutual fund tax liability. Type of funds:...
The Union Budget of 2020 changed the rules on tax on dividend from equity mutual fund in India. You need not pay a Dividend Distribution Tax (DDT) on equity mutual funds now, and the dividends are taxable in the hands of the investors. This amendment is likely to reduce the ...
So for example, if you invest Rs 5.0 lac in an equity fund on 15th August 2017 and after 2 years, when you sell, the value you get is Rs 6.5 lac – then the capital gains is Rs 1.5 lac. Now how much is this capital gains taxed depends on the type of mutual fund and the holdi...
ELSS mutual fund investments come with a three year lock-in period. Therefore, before investing in an ELSS fund, it is important to consider the lock-in duration. Also, the fund doesn’t allow premature withdrawals during the three year lock-in period. Since ELSS funds invest most of their...
Taxation of Mutual Fund Trusts and Corporations in CanadaMitchell Thaw
There are two lessons from the Tax Foundation’s video about what happened in the late 1700s in France. First, the French government (some things never change) was being a “stationary bandit” that got too greedy for its own good. ...
Which raises the interesting question: When will there so many peopleriding in the wagonthat there no longer will be enough people topull the wagon? P.S. California’s policies are so terrible that it’s the only state to have generated multiple humor columns (seehere,here,here,here,here,...
1. Things to Consider Before Investing in Mid-Cap Funds Investment Goal: As this is an equity mutual fund, it generally has a long-term investment horizon. It helps in fulfilling long-term financial goals. So this fund is best suited for investors who are ready to invest for at least 5...