POSTED BY
avi
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October 22, 2010 10:51 pm COMMENTS (4)
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4 replies on this article “Will i be taxed for investing in MF or while redeeming the amount during my requirement? how do we mention the amount while filing returns”
There is no tax on investing on mutual funds. However, if you exit from mutual funds within a year, you’ve to pay 15% short-term capital gain tax on profit. There is no tax on profit if you exit after 1 year under long-term capital gain tax.
You need to mention this profit / loss under Capital Gain Tax column in ITR.
1.) Instead of exiting the MF, if i partially withdraw money before one year, do i need to pay tax ?
2.)After one year, if i partially withdraw money, do i need to mention in tax filing even though if i am not paying any tax?
3.) Ho do we calculate the one year completion ? From the day we opened the MF or from the day we last invested ?. Since i am investing every month via SIP.
1. Yes, even if you withdraw partially, you need to pay tax on profit made.
2.Yes, you need to mention in ITR, under short term capital gain tax.
3.One year is considered as 365 days from the date of investment. In SIP, count 365 days from 1st installment, then 365 days from 2nd installment and so on….
There is no tax on investing on mutual funds. However, if you exit from mutual funds within a year, you’ve to pay 15% short-term capital gain tax on profit. There is no tax on profit if you exit after 1 year under long-term capital gain tax.
You need to mention this profit / loss under Capital Gain Tax column in ITR.
Hope it will help you.
Investmentkit.com
Thx
Hi,
I have few more questions related to tax filing.
1.) Instead of exiting the MF, if i partially withdraw money before one year, do i need to pay tax ?
2.)After one year, if i partially withdraw money, do i need to mention in tax filing even though if i am not paying any tax?
3.) Ho do we calculate the one year completion ? From the day we opened the MF or from the day we last invested ?. Since i am investing every month via SIP.
Thx
Hari.
Your answers in same order.
1. Yes, even if you withdraw partially, you need to pay tax on profit made.
2.Yes, you need to mention in ITR, under short term capital gain tax.
3.One year is considered as 365 days from the date of investment. In SIP, count 365 days from 1st installment, then 365 days from 2nd installment and so on….
Hope it will help you,
InvestmentKit.com