Income Tax Mutual Fund Redemption

Ask question asked 4 years ago.

Income tax mutual fund redemption. Please tell me that amount received on redemption of mutual fund is exempted or taxableif there is ashort term redemption or long term and if its any relation with sec 10 35 samely if the amount received on its sale is it will be considered as capital gain or not income tax. An investor is not required to pay stt separately as it is deducted from the mutual fund returns. Income from redemption of units of mutual fund in the hands of firm formed with an object to carry out money lending business whether business income or capital gain income. These are called tax saving mutual funds or elss equity linked saving scheme.

Excess and above of rupees 10 lakhs might be taxed. Best tax saving investments u s 80c. In addition to above there is 0 001 securities transaction tax stt changed from 0 25 from june 2013 is levied on redemption of equity mutual funds irrespective of the holding period. My question is how income tax is calculated for.

As i am urgently in need of money i am planning to partially redeem by selling some units. There is no stt for non equity mutual funds. I am regularly investing in mutual funds for the past 2 years via sip. Income tax on mutual fund.

If you have invested in retail mutual funds then the income earned from the redemption of these units will be tax free up to a number of rupees 10 lakhs in one year. Equity balanced mutual fund 1 year. All funds will attract tax to some level on redemption. Some mutual funds gives us deduction under section 80c of income tax act 1961.

Securities transaction tax stt a securities transaction tax stt is applicable at the rate of 0 001 on equity oriented mutual funds at the time of redemption of units. Budget 2020 proposes to re introduce section 194k under the income tax act 1961 ita under which the payer will be required to deduct tax at source while crediting or paying any income in respect of units of mutual fund in case the aggregate income credited or paid during the financial year exceeds rs 5 000. Viewed 1k times 1. Active 4 years ago.

The short term taxes are higher of course as shown in the table above while long. Best elss top 10 tax saving mutual funds for fy 2019 2020. The dividend that you will receive will be considered as your earnings against your investments in the mutual fund. Income tax for partial redemption of mutual funds india.