Taxation on Mutual funds

POSTED BY Vinay ON October 7, 2012 8:46 pm COMMENTS (3)

I read some online articles but it is still not very clear to me the taxation rules on income earned from Mutual fund. Can someone help to answer this in plain language for dump person who does not understand technical words of finance domain.

1. % Tax person has to pay for Income earned by dividends for investments in MF.

2. % tax person has to pay if he earns some amount as difference in buying and selling price of mutual funds. 

 

Thanks in advance,

-Vinay

3 replies on this article “Taxation on Mutual funds”

  1. Rosh says:
    October 8, 2012 at 11:02 am

    A detailed article written by Mr. Hemant Baniwal regarding taxation of MF

    http://www.tflguide.com/2011/12/mutual-fund-taxation-in-india.html

    Reply
    1. Vinay says:
      October 9, 2012 at 9:25 am

      Thank you Rosh and Deepak, this answers my question.

      Reply
  2. Deepak R khemani says:
    October 7, 2012 at 11:45 pm

    Hi Vinay,
    All dividends earned from any MF scheme equity or debt are tax free in the hands of the receiver(investor).
    However you should know that in case of DEBT MFs tax is deducted before the dividend is paid.
    There is no tax on gains of Equity funds if held for more than a year, for less than a year Short term capital gains is applicable.
    For further details please refer to this link
    http://www.hdfcfund.com/InvestorCorner/ContentDisplay.aspx?ReportID=4264D3B7-2342-46CA-870F-C67AE09906D1

    Reply

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