Income Tax On Mutual Fund Returns India

There can be two form of returns.

Income tax on mutual fund returns india. Just upload your form 16 claim your deductions and get your acknowledgment number online. Best tax saving investments u s 80c. In what forms an investor can earn returns from mutual fund schemes. There are differential rates of tax for equity mutual funds and debt mutual funds for long term and short term.

You can efile income tax return on your income from. In the new structure that starts for 1 april 2020 the ddt has been abolished and the dividend is now taxable at the hands of the shareholder or mutual fund unit holders. Since large cap fund being equity mutual fund his returns on this are tax free as held it for more than 12 months. Whenever you are to file your income tax return then it is advised that you discuss with an income tax consultant first.

You can claim a deduction up to rupees 1 50 000 only under section 80c. 1 the income tax rate of short term capital gain stcg on equity funds is 15. Mutual funds that fall under the category of pension and elss will help you with tax savings under section 80c of the income tax act. As per the finance bill 2020 the tax on dividend income on equity mutual funds are.

Efiling income tax returns itr is made easy with cleartax platform. 2 the long term capital gain ltcg on equity funds is 10 if it s exceeding rs 100 000. What will be the tax on mutual fund returns in india. However as per the newly inserted section 112a via finance act 2018 if the amount of long term capital gain exceeds rs 1 00 000 than the amount in excess of rs 1 00 000 shall be chargeable to tax 10 without indexation plus heath and education cess and surcharge.

Tax experts 10000 businesses across india. 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. To understand the tax treatment of mutual fund returns we have to first answer a simple question. The dividend that is received in the hands of the investor is tax free up to rs 10 lakh.

Capital gains tax on mutual funds in india for fy 2019 20 stt on mutual funds. However to avail of the tax benefit your money must be locked up for at least three years. Mutual fund schemes have dividend plans where the fund house releases dividends to investors periodically. There is no stt for non equity mutual funds.