Taxation of Mutual Funds
Understand the complete tax treatment of mutual fund investments — STCG, LTCG, dividend taxation, stamp duty, TDS rules, and Section 80C benefits. Practical tax knowledge every distributor must have.
Tax Treatment — Equity vs Debt vs Hybrid Funds
The Income Tax Act treats mutual fund gains differently based on the underlying asset composition of the scheme. An equity-oriented fund must hold at ...
Short-Term Capital Gains (STCG) — Rules & Rates
Short-Term Capital Gains (STCG) arise when mutual fund units are redeemed before the specified minimum holding period. For equity-oriented funds (65%+...
Long-Term Capital Gains (LTCG) — Rules & Rates (Post Budget 2024)
Long-Term Capital Gains (LTCG) arise when mutual fund units are held beyond the minimum holding period before redemption. For equity-oriented funds, L...
Dividend Taxation — How It Changed After 2020
Mutual fund dividends (now officially called Income Distribution cum Capital Withdrawal — IDCW) were tax-free in the hands of investors until March 31...
Stamp Duty on Mutual Fund Transactions
From July 1, 2020, stamp duty of 0.005% is levied on the purchase (subscription), switch-in, and SIP installments of mutual fund units. This duty is a...
Tax Deducted at Source (TDS) — NRI & Resident Rules
Tax Deducted at Source (TDS) is a mechanism where the mutual fund house (AMC) deducts tax at specified rates before paying the investor, and remits it...
Section 80C — ELSS Tax Saving & Other Benefits
Equity Linked Savings Scheme (ELSS) is a category of equity mutual funds that qualifies for tax deduction under Section 80C of the Income Tax Act. Inv...
Setting Off Capital Gains & Losses — Practical Examples
The Income Tax Act allows taxpayers to set off capital losses against capital gains to reduce their tax liability. Short-Term Capital Loss (STCL) can ...
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