Mutual funds: How long can you stay invested in a scheme?
1 year, 9 months ago

Mutual funds: How long can you stay invested in a scheme?

Live Mint  

While you shortlist an investment product, it is also very important to know the holding period or the ideal period to stay invested in the product. The Short Term Capital Gains tax is higher than the Long Term Capital Gains tax and so it would be wise to stay till the completion of the short term capital gains period. Up to 1 lakh long term capital gains waiver in a year Every financial year up to 1 lac of long term capital gains from equities or equity mutual funds is waived from being taxed. So to make use of this benefit investors can redeem equity mutual fund units with up to 1 lacs of long term capital gains every financial year. Exit from debt funds Short term capital gains from debt funds, which are gains generated in less than 3 years are taxed are the applicable marginal tax slab of investors.

Tax Equity Capital Mutual Funds Hybrid Funds Term Funds Exit Scheme Stay Gains Long Term 3 Years Mutual Fund Swp Ltcg Tax Stcg Elss Schemes Equity Funds Debt Funds Long Period Exit Load  capital  mutual  fund  stay  funds  equity  long  period  gains  exit  invested  scheme  term  tax

History of this topic

Make your investments more tax-efficient with these debt-oriented funds
1 week, 2 days ago

Make your investments more tax-efficient with these debt-oriented funds

Live Mint  

Since April 2023, fresh investments in the growth option of debt mutual funds have been taxable at the marginal income tax rate for short-term capital gains. Fund of funds You can hold these funds for two years to qualify for LTCG tax at 12.5% plus surcharge and cess. Funds with 35-65% equity allocation were eligible for LTCG tax and indexation …

Mutual Fund SIP: How Will Budget 2024 Impact Tax Calculations on Capital Gains?
5 months ago

Mutual Fund SIP: How Will Budget 2024 Impact Tax Calculations on Capital Gains?

News 18  

The Union Budget 2024-25 increased taxes on short-term capital gains and long-term capital gains for equity-oriented funds. The budget, announced on July 23, raises the STCG tax on equity mutual funds to 20% from the previous 15%, while the LTCG tax has increased to 12.5% from 10%. Equity mutual funds remain a popular choice for Indian investors seeking exposure to …

Enhancing Investor Returns: A Proposal to Revise Capital Gains Tax for Debt Mutual Funds
6 months, 2 weeks ago

Enhancing Investor Returns: A Proposal to Revise Capital Gains Tax for Debt Mutual Funds

Deccan Chronicle  

In recent years, the realm of investment has witnessed a surge in the popularity of debt mutual funds as a lucrative avenue for generating steady returns while managing risk. However, amidst the evolving landscape of taxation policies, there arises a pressing need to reevaluate the existing capital gains tax regime governing debt mutual funds. To address this, a proposed revision …

Budget expectations from individual taxpayers, investors
11 months, 1 week ago

Budget expectations from individual taxpayers, investors

New Indian Express  

“The other demands are to make pensions tax-free in the hands of annuitants. Level-playing field between mutual funds and Ulips: At present, capital gains made from Unit-linked Insurance Plans are tax-free if the annual premium is less than R2.5 lakh. MF industry has been demanding a level playing field between Ulips and equity mutual funds as far as tax on …

Government scraps long-term tax benefit for debt mutual funds investing less than 35% assets in equity
1 year, 9 months ago

Government scraps long-term tax benefit for debt mutual funds investing less than 35% assets in equity

The Hindu  

The government has scrapped the long-term capital gains treatment for income from debt mutual funds and other schemes that invest upto 35% in equity shares of domestic companies. “An arbitrage is being created right now where interest income from debt mutual funds is not distributed and converted into long term capital gains of 20%. “The amendment will treat gains from …

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