Income On Mutual Funds Is Taxable
An elss comes with a lock in period of 3 years which means.
Income on mutual funds is taxable. While you own the shares or units you are taxed on the distributions of income that are flowed out to you. In most situations income from mutual funds is taxed in two ways. 1 5 lakh per annum under section 80c of the income tax act. Tax benefit of mutual funds.
Equity linked savings scheme is a type of equity fund and the only mutual fund scheme which qualifies for a tax deduction of rs. Whether it is about capital gains or earning a regular income investors can choose from a wide variety of funds available in. Hence as it stands ddt has been abolished under the new tax regime. The other way to minimize your income tax bill is to invest in so called tax free mutual funds.