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Mutual Funds and Taxes

 

Different types of Mutual Funds attract different types of taxes. Here is all you would want to know about taxes applicable on Mutual Funds in India.

Taxation

Equity Funds

Liquid funds/Money Market Funds

Debt fund/liquid plus Funds

Short Term Capital Gain Tax

*15.45%

As per Income Tax Slab

As per Income Tax Slab

Long Term Capital Gain Tax

Nil

Less of 10% without indexation or 20% with indexation

Less of 10% without indexation or 20% with indexation

Dividend Distribution Tax

Nil

**28.325%

**14.163%

  • 80C benefits through ELSS: Under the current tax laws, you can get an annual income tax benefit of up to Rs. 1Lakh if you invest in Equity Linked Savings Schemes, ELSS. However, the minimum term for these schemes is 3 years and you cannot withdraw your money before that time

*The education cess of 3% shall be levied on all investors.

*Short Term Capital Gain Tax indicated above is inclusive of education cess

**Dividend Distribution Taxes indicated above are inclusive of additional surcharge and cess.

 

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