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What are the tax benefits I can get while investing through Mutual Funds?
As per Section 62 of Income Tax Ordinance, 2001, an individual investor of open end mutual fund (unit trust schemes)can claim tax credit on investment up to Rs. 2,000,000/- or 20\% of individual’s taxable income (whichever is lower) on an investment made in Mutual Funds between July 1st and June 30th.
Which Mutual Funds are exempt from tax?
Mutual funds invested in government or municipal bonds, also called munis, are often referred to as tax-free or tax-exempt funds because the interest generated by these bonds is not subject to income tax.
Is investing in mutual funds tax free?
Long term capital gains upto Rs 1 Lakh is totally tax free. Mutual fund tax benefits under Section 80C – Investments in Equity Linked Savings Schemes or ELSS mutual funds qualify for deduction from your taxable income under Section 80C of the Income Tax Act 1961.
What is the tax rate on a mutual fund?
Long-term capital gains are gains from the sale of capital assets held for more than 12 months and are currently subject to a federal long-term capital gains tax rate of up to 20\%. But a capital gain in one mutual fund doesn’t guarantee that you’ll owe taxes on that gain.
What are the tax benefits of investing in mutual funds?
To get mutual funds investment tax benefits, you need to invest in a scheme called ELSS or Equity Linked Savings Scheme. This scheme has a lock in period of 3 years, which means any investment made under this scheme can only be withdrawn after 3 years are complete. Apeksha can claim tax deduction of up to Rs 1.5 lakh.
What are the tax benefits of mutual funds under Section 80C?
Mutual fund tax benefits under Section 80C – Investments in Equity Linked Savings Schemes or ELSS mutual funds qualify for deduction from your taxable income under Section 80C of the Income Tax Act 1961. The maximum investment amount eligible for tax deduction under Section 80C, is Rs 1.5 lakhs.
Are mutmutual funds tax friendly?
Mutual funds, on the other hand, are one of the most tax friendly investment options available to Indian investors. An important point to note in mutual fund investments is that, an incident of tax arises only upon the sale of units of a mutual fund scheme.
Are mutual funds a good investment option?
Though Mutual Funds are a good investment avenue, one must also include other financial instruments in his portfolio to minimize risk and cater to his financial goals adequately. Note: Please feel free to drop in your suggestions.