Refer website to a friend


Invest
in
Mutual Funds

Join The Discussion Now
Visit Mutual Fund Forum to discuss about MF's entry load, exit load, NFO's, fund managers and more
print Email

Mutual Funds and Taxes

Different types of Mutual Funds attract different types of taxes. Here is all you would want to know about taxes applicable on Mutual Funds in India.

Taxation Equity Funds Liquid funds/Money Market Funds Debt fund/liquid plus Funds
Short Term Capital Gain Tax *15.45% As per Income Tax Slab As per Income Tax Slab
Long Term Capital Gain Tax Nil Less of 10% without indexation or 20% with indexation Less of 10% without indexation or 20% with indexation
Dividend Distribution Tax Nil **28.325% **14.163%
  • 80C benefits through ELSS: Under the current tax laws, you can get an annual income tax benefit of up to Rs. 1Lakh if you invest in Equity Linked Savings Schemes, ELSS. However, the minimum term for these schemes is 3 years and you cannot withdraw your money before that time

*The education cess of 3% shall be levied on all investors.

*Short Term Capital Gain Tax indicated above is inclusive of education cess

**Dividend Distribution Taxes indicated above are inclusive of additional surcharge and cess.


If you liked this article, you might also want to read:

Comments
post new comment      Ask a question
Shrikant said :
06/05/2010 		what is tax with and without indexation? where can I find info about this for my MF tax calculation? I have recently invested in Reliance MIP.