How is income from mutual funds taxed? All you need to know
2 years, 1 month ago

How is income from mutual funds taxed? All you need to know

Firstpost  

One receives income from regular dividends and capital gains on the sale of shares when one invests in a mutual fund. The holding period and the type of mutual fund decides the tax rate on capital gains arising from mutual funds An investor gets access to diversified and professionally managed portfolios through mutual funds. Short-term capital gains, earned on redeeming the debt fund units within 36 months, are added to the taxable income and taxed at your income tax slab rate. Long-term capital gains, received on the sale of debt fund units after a holding period of 36 months, are taxed at a flat rate of 20 per cent post indexation. Short-term capital gains earned on redeeming the equity fund units within a 12-month holding period, are taxed at a flat rate of 15 per cent.

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History of this topic

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 …

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