Table of Contents
Which mutual funds are tax free in India?
Top 10 Tax Saving Mutual Funds in India
Funds | 1-Year Returns (\%) | 5-Year Returns |
---|---|---|
Aditya Birla Sun Life Tax Relief 96 Fund Growth | 19.3 | 23.5 |
Aditya Birla Sun Life Tax Plan Growth | 18.9 | 22.6 |
DSP BlackRock Tax Saver Fund Growth | 9 | 21 |
Axis Long Term Equity Fund Growth | 18.1 | 24 |
Which mutual fund is best for tax saver?
Best ELSS or tax saving mutual funds to invest in 2022.
- Axis Long Term Equity Fund.
- Canara Robeco Equity Tax Saver Fund.
- Mirae Asset Tax Saver Fund.
- Invesco India Tax Plan Fund.
- DSP Tax Saver Fund.
How much tax I can saved on mutual fund?
Rs 1.5 lakh
You are allowed to invest up to Rs 1.5 lakh in tax-saving funds. You will get a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. a. ELSS funds are the only tax-saving funds within the Rs 1.5 lakh limit which has the additional advantage of giving equity-linked returns.
Is mutual fund under 80C?
ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year.
Are debt funds tax free in India?
Long term capital gains of debt fund are taxed at 20\% with indexation….Tax Benefits of Investing in Mutual Funds.
Nature of Profits / Income | Equity Funds Taxation | Non-Equity Funds Taxation |
---|---|---|
Minimum Holding period for Long term capital gains | 1 year | 3 years |
How do you calculate debt fund tax?
Any interest earned on debt funds that are held for more than 3 years is counted under Long-Term Capital Gain. The applicable taxation rate in this case is 20\% with indexation plus 3\% cess which comes down to 20.90\%. For example: Sunil is an employee in the IT sector. He earns a salary of Rs.
Is SBI Mutual Fund tax Free?
When you invest in SBI MF ELSS Funds, you become eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. In this, the amount invested by you gets deducted from your taxable income.
Which type of debt fund is good?
For a medium-term investor, debt funds like dynamic bond funds are ideal for riding the interest rate volatility. When compared to 5-year bank FDs, debt bond funds offer higher returns. If you are looking to earn a regular income from your investments, then Monthly Income Plans may be a good option.
What are tax saving mutual funds in India?
There are various types of mutual funds in India. Some of the mutual funds also offer tax benefits. These are popularly known as tax saving mutual funds. Equity Linked Savings Scheme is an example of tax saving mutual funds.
What is tatatata India Tax Saving Fund?
Tata India Tax Saving Fund: The Tata India Tax Saving Fund is an open-ended equity-linked savings scheme offered by Tata Mutual Fund.
How are capital gains from mutual fund investments taxed?
How capital gains are taxed depends on the length of time for which an investor holds the units of a mutual fund. If an investor stays invested in a debt fund for a period up to 3 years, capital gains on redemption/sale are considered as short-term capital gains and taxed at the income tax slab rate applicable to the investor.
What is the maximum amount required to invest in tax saving mutual funds?
While there is no upper limit, only investments worth Rs.100,000 will be eligible for tax benefits. Investments made in tax saving mutual funds come with a lock-in period of 3 years.